From July 2020 to March 2023, Cape Securities failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI). Cape Securities also failed to reasonably supervise its registered representatives’ recommendations to purchase GWG L Bonds and non-traditional exchange-traded products (NT-ETPs) for compliance with Reg BI. As a result, Cape Securities willfully violated Reg BI and violated FINRA Rules 3110 and 2010.

McCarthy refused to provide documents and information requested pursuant to FINRA Rule 8210. As a result, he violated FINRA Rules 8210 and 2010 and is barred from associating with any FINRA member in all capacities...