Washington DC-August 14,2014
The Securities & Exchange Commission (SEC) charged Linkbrokers Derivatives, LLC, a New York based brokerage firm, with unlawfully taking secret profits of over $18 million. The illicit profits were concealed in undisclosed markups and markdowns on customer trades.
According to the SEC pleading, Linkbroker representatives purported to charge very low commissions, but were actually collecting fees as high as 1000% of the amount customers thought they were paying. The scheme was accomplished by misrepresenting the price at which the security was actually purchased for or sold at.
Linkbrokers has agreed to pay $14 million to settle the SEC charges. In a prior action, the SEC had charged four former Linkbroker brokers and 3 of them settled for $4 million plus interest.
Rex Securities Law provides nationwide representation to investors 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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