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Feltl & Company Fined $1 Million Over Penny-Stock Sales

Feltl & Company Fined $1 Million Over Penny-Stock Sales

Feltl & Company Fined $1 Million Over Penny-Stock Sales 150 150 Rex Securities Law

On September 3, 2014,  the Wall Street Journal reported that Minneapolis broker-dealer Feltl & Company, who has about 113 brokers and eight branch offices in Minnesota and Illinois,  has been fined $1 million by the Financial Industry Regulatory Authority (FINRA) for failing to supervise its penny-stock business between 2008-2012.

According to the WSJ article, FINRA’s charges include:

  • Feltl failed to inform some customers about the risks and suitability of certain penny-stock transactions
  • Feltl did not include market values of penny-stocks on account statement

Penny stocks are generally issued by small companies with little revenue and usually trade below $5 per share. FINRA had mentioned penny stocks as an area of concern in their January annual enforcement letter.

Link to FINRA Letter of Acceptance Waiver and Consent assessing censure and fine of $1 million. 

If you had losses in penny stocks purchased in your account at Feltl & Company, call to discuss your legal options.

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.

Rex Securities Law

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