June 2017 -Austin, TX
The Texas State Securities Board entered a disciplinary order against Chicago-based PTI Securities & Futures for transferring nearly $100,000 from a 75 year old Texan’s IRA to unknown individuals based on the authority contained spam emails. Link to TSSB Disciplinary Order.
According to the TSSB Order, PTI Securities missed numerous red flags along the way:
- One of the emails requesting the transfer contained the term “SPAM” in the subject line.
- The signatures on the forms requesting the transfers did not match the signature on the client’s account application
- The distribution requests had an incorrect social security number and birth date for the client. The client was born in 1934 and the birthdate on the form was 1969.
- The client had never previously made wire transfers to either of the individuals on the transfer forms
- PTI Securities’ CCO did not speak to the client prior to processing the wire transfers.
PTI Securities & Futures made a full repayment of the $91,560 which was wrongly transferred and now prohibits transfers from client accounts to accounts that are not owned by the client.
TSSB reprimanded PTI Securities & Futures and fined the firm $5,000.
In April 2017 Illinois regulators, who had been investigating the matter, assessed PTI Securities & Futures a fine of $2,500.
If you have losses in an account handled at PTI Securities & Futures, contact us to discuss your legal options.
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.
Florida-561 391 1900