Parkland Securities, Ann Arbor, MI, (formerly known as Sammons Securities Company) was censured and fined $100,000 by FINRA to resolve allegations that it violated FINRA and NASD rules related to supervision of its brokers and other matters.
The FINRA findings noted that from March 8, 2010 to October 8, 2012, Sammons supervisory and compliance functions were conducted by B/D OPS, LLC, a related company, which also provided supervisory and compliance services to another broker-dealer.
The 35 person staff of BD OPS was responsible for supervising a total of 1,274 brokers and 854 branch offices, an undertaking which FINRA found to be unreasonable. With only 3 people serving as field auditors, they were performing 5-10 branch inspections per week. Simmons system of supervision was found to be inadequate.
FINRA also found the Sammons failed to properly review broker emails for red flags, and failed to conduct any independent due diligence for structured products sold to customers.
If you lost money in an account at Parkland Securities (Sammons) contact us to learn how you may be able to recover damages.
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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