TPEG Fined $175K Over Marketing Materials, Failed Complaint Reporting

TPEG Securities LLC, a financial firm specializing in private placement offerings, has been censured and hit with a $175,000 fine by the Financial Industry Regulatory Authority. In a recently finalized settlement, the firm was found to have distributed misleading marketing materials and systematically failed to report customer complaints over a nearly six-year period.

According to the letter of acceptance, waiver, and consent, or AWC, accepted on Jan. 26, 2026, TPEG’s violations spanned from September 2018 through May 2024. FINRA investigators found that TPEG violated strict industry standards for public communications by including performance projections and aggregated metrics in its sales materials. Under FINRA Rule 2210, member firms are prohibited from predicting or projecting investment performance in most retail communications.

The AWC detailed several instances of non-compliance:

• Masking performance: The firm used aggregated internal rates of return from previous deals, which masked the performance of individual investments and provided an unrepresentative view of potential returns.
• Promissory claims: One offering communication explicitly projected a “target IRR of 31.1%+” and a nearly 300% cash multiple over a four-year hold period.

These actions violated FINRA Rules 2210(d) and 2010, which require firms to observe high standards of commercial honor and avoid “exaggerated, unwarranted, promissory or misleading” statements.

In addition to marketing failures, TPEG was found to have violated reporting obligations regarding written customer grievances. The firm failed to report 15 written customer complaints and failed to disclose three complaints against its registered representatives on their required Form U4 filings.

The firm reportedly mischaracterized these grievances as issues relating to its non-registered affiliate issuer rather than the broker-dealer itself. Because the investments were sold by TPEG, the firm was legally required to report them.

FINRA also concluded that TPEG failed to maintain an adequate supervisory system. While the firm had general written procedures, they failed to provide reasonable guidance on how to distinguish whether a complaint concerned the issuer or the broker-dealer.

As part of the settlement, TPEG Securities consented to a censure and agreed to pay a $175,000 fine. The firm has updated its written supervisory procedures and ceased using aggregated performance metrics in its communications.

As is standard in such settlements, TPEG accepted the findings without admitting or denying the allegations.

TPEG has been a FINRA member since 2008 and is located in Southlake, Texas. The firm has approximately 30 registered representatives. TPEG primarily markets and sells private placement offerings issued by its affiliate, which invests in both operating companies and real estate development projects.

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