# CHATSWORTH SECURITIES LLC X-17A-5 (2019-02-26) — Broker-dealer annual report
- Company: CHATSWORTH SECURITIES LLC
- Form: X-17A-5
- Filed: 2019-02-26
- Period: 2018-12-31
- Accession: 0001011766-19-000001
- CIK: 1011766
- File #: 8-49199
- Material weakness: No
- Auditor: Ohab and Company, P.A.
- Auditor location: Maitland, FL
- Contact: David Barnet
- Phone: 2124903113
- Email: pam@ohabco.com
- Website: ohabco.com
- Signed by: Ralph DiFiore (Senior Managing Director)
Original filing: https://www.sec.gov/Archives/edgar/data/1011766/000101176619000001/chatpubpdf.pdf
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# CHATSWORTH SECURITIES LLC
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2018
**PUBLIC**
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
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# **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**
SEC FILE NUMBER B-49199
FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| | REPORT FOR THE PERIOD BEGINNING 01/01/2018
AND ENDING 12/31/2018 | | | |
|-------------------------------------------------------------------|--------------------------------------------------------------------------|-------------------|-----------------------------------|--|
| | MM/DD/YY | | ---------------------
MM/DD/YY | |
| | A. REGISTRANT IDENTIFICATION | | | |
| NAME oF BROKER-DEALER: Chatsworth Securities LLC | | OFFICIAL USE ONLY | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM J.D. NO. | |
| 95 East Putnam Avenue | | | | |
| | (No. and Street) | | | |
| Greenwich | CT | | 06830 | |
| (City) | (State) | | (Zip Code) | |
| David Barnett | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | (212) 490-3113 | |
| | | | (Area Code- Telephone Number) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | |
| Ohab and Company, P .A. | | | | |
| | (Name- if individual, state last, first, middle name) | | | |
| | 100 E. Sybelia Avenue, Suite 130 Maitland | FL | 32751 | |
| (Address) | (City) | (State) | (Zip Code) | |
| CHECK ONE: | | | | |
| j.{ I
Certified Public Accountant | | | | |
| Public Accountant | | | | |
| B | Accountant not resident in United States or any of its possessions. | | | |
| | FOR OFFICIAL USE ONLY | | | |
| | | | | |
| | | | | |
| | | | | |
*\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17 a-5 (e)(2)*
> Potential persons who are to respond to the collection of information contained In this form are not required to respond unless the form displays a currently valid OMB control number.
SEC 1410 (11-05)
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#### OATH OR AFFIRMATION
| I, Ralph DiFiore | , swear (or affirm) that, to the best of |
|-------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Chatsworth Securities LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of |
| of December 31 | ----------------------------------------------------------------------------------------
'as
20 18
are true and correct. I further swear (or affirm) that |
| | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account |
| classified solely as that of a customer, except as follows: | |
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100 E. Sybelia Ave. Suite 130 Maitland, FL 32751
*Certified Public Accounlllnts* Email; pam@ohabco.com
Telephone 407.740-7311 Fax 407-740-6441
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Member's of Chatsworth Securities, LLC
#### **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of Chatsworth Securities, LLC as of December 31, 2018, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, In aU material respects, the financial position of Chatsworth Securities, LLC as of December 31, 2018 In conformity with accounting principles generally accepted In the United States of America.
#### **Basis for Opinion**
This financial statement Is the responsibility of Chatsworth Securities, LLC's management. Our responsibility Is to express an opinion on Chatsworth Securities, LLC's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting OverSight Board (United States) (PCAOB) and are required to be independent with respect to Chatsworth Securities, LLC In accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit In accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit Included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures In the financial statements. Our audit also included evaluating the accounting principles used and slgnmcant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
We have served as Chatsworth Securities, LLC's auditor since 2018.
Maitland, Florida
February 23, 2019
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# CHATSWORTH SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018
# ASSETS
| Cash and cash equivalents | | 56,385 |
|------------------------------------------|----|--------|
| Furniture and equipment, at cost, net of | | |
| accumulated depreciation of \$88,202 | | 989 |
| Prepaid expenses | | 2,526 |
| Accounts receivable | | 4,000 |
| Security deposit | | 3,400 |
| | | |
| TOTAL ASSETS | | 67,300 |
| | | |
| LIABILITIES AND MEMBERS' EQUITY | | |
| LIABILITIES | | |
| Accrued expenses and other liabilities | | 36,692 |
| MEMBERS' EQUITY | | 30,608 |
| | | |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | \$ | 67,300 |
| | | |
The accompanying notes are an integral part of this statement.
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### CHATSWORTH SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018
### 1. NOTES ON SIGNIFICANT BUSINESS ACTIVITIES
Chatsworth Securities LLC, (the "Company") was organized under the Limited Liability Company Laws of the State of New York in March 1996. The Company is a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA'). The principal source of the Company's income is through private placement of securities.
In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in market (market risk) or failure of the other party to the transaction to perform (credit risk) exceeds the amounts recorded for the transaction.
The Company's policy is to continuously monitor its exposure to market and counter-party risk through the use of a variety of financial position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker-dealer, clearing organization, customer and/or other counterparty with which it conducts business.
#### 2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates.
Security transactions and financing with the clearing broker are classified as operating activities on the statement of cash flows since this is the Company's principal business.
The Company maintains cash and cash equivalents with financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). Cash deposited with a single brokerage institution are insured up to \$500,000 per customer, including up to \$250,000 for cash deposits, by the Securities Investor Protection Corp. ("SIPC"). The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents.
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## CHATSWORTH SECURITIES LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (continued)
# 3. CONCENTRATION OF CREDIT RISK
Ten clients accounted for 88.46% of consulting and private placement revenue for the current year. The top three clients accounted for 50.81% of consulting and private placement revenue for the current year.
## 4. INCOME TAXES
The Company is recognized as a Limited Liability Company (an "LLC") by the Internal Revenue Service. As an LLC, the Company is not subject to income taxes. The Company's income or loss is reportable by its members on their individual tax returns.
Uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. The tax years that remain subject to examination are 2015, 2016, 2017 and 2018. For the year ended December 31, 2018 management has determined that there are no material uncertain income tax positions.
### 5. RELATED PARTY TRANSACTION
The Company shares office space and other overhead with a company related by common ownership. For the year ended December 31, 2018, the Company elected to waive the rent and certain other expenses that would otherwise be charged to the related party.
### 6. RULE 15C3-3
The Company is exempt from the provisions of Rule 15c3-3 under paragraph (k)(2)(i) in that the Company carries no margin accounts, promptly transmits all customer funds and delivers all securities received, does not otherwise hold funds or securities for or owe money or securities to customers and effectuates all financial transactions on behalf of customers on a fully disclosed basis.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.