February 13, 2015
OneAmerica Securities, Inc. entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that they failed to make reasonable inquiries or otherwise follow-up on multiple red flags that indicated one of their brokers, Matthew J. Davis, was making unsuitable options recommendations and causing improper transfers of funds to a third party.
Davis was barred from the securities industry as a sanction from a FINRA disciplinary proceeding in an AWC issued in April 2014.
According to this recent AWC with OneAmerica Securities, Davis opened an account for a 65 year old couple with earnings between $50,000-$75,000 and a net worth (not including their residence) of between $250,000-$500,000. The couple indicated they had only two years of prior investment experience.
Davis sold puts and calls in the couple’s account causing the account to lose over half its value in a year.
OneAmerica Securities was censured for failing to supervise Davis and fined $75,000.
OneAmerica Securities was formed in 1969 and is registered in 51 U.S. States and territories. Their main office is located in Indianapolis, Indiana.
OPTION TRADING NOT SUITABLE FOR ALL CUSTOMERS
Option trading can be risky and therefore unsuitable for retirees on fixed income. If you have suffered losses on option trading in your brokerage account, call to speak with an experienced securities attorney.
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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