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FINRA Assesses Some Big $$ Fines to Broker Dealers

FINRA Assesses Some Big $$ Fines to Broker Dealers 150 150 Rex Securities Law

By Robert H. Rex, Esq.

In April 2014, the Investment News published the following “8 big-money FINRA Fines”:
 
  • Berthel Fisher & Co. Financial Services fined $775,000 to resolve claims that they didn’t adequately train or supervise brokers selling alternative investments (REITs, limited partnerships,private placments, etc) and traditional Exchange Traded Funds (ETFs)
  • LPL Financial fined $950,000 to resolve allegations related to supervisory deficiencies in connection with the sale of alternative investment products.
  • COR Clearing, LLC(formerly Legent Clearing LLC) censured and fined $1,000,000 by FINRA for several compliance deficiencies including anti-money laundering procedures, financial reporting and supervision. 
  • Triad Advisors fined $650,000 and ordered to pay restitution of $375,000 because of a failure to supervise hundreds of brokers who created and distributed to clients inaccurate consolidated account statements. 
  • State Trust Investments of Miami, FL, fined $1,045,000 and ordered to pay restitution of $353,319 for charging unfair markups and markdowns in corporate bond transactions. 
  • Merrill Lynch fined $900,000 and ordered to pay restitution of $1.1 million for selling mutual funds of floating-rate bank loans during the credit crisis that were not suitable for their clients.
  • Wells Fargo Advisors fined $1.250,000 and ordered to pay restitution of $2 million for same reason as Merrill above, selling mutual funds of floating-rate bank loans during the credit crisis. 
  • LPL Financial fined $7.5 million and ordered to pay restitution of $1.5 million, for a total of $9 million in what is alleged to be the largest FINRA fine ever, for significant failures of their email system. 
Stockbrokers and broker dealers have a duty to make suitable recommendations to their customers. If you believe you are the victim of broker negligence or fraud, call to discuss your legal rights. 
 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

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