October 2017-San Antonio, Texas
San Antonio, Texas, based stock brokerage firm Investment Professionals, Inc. (IPI) recently was ordered by William F. Galvin of the Massachusetts Securities Division to pay a $100,000 fine and offer restitution to four senior clients who were allegedly sold unsuitable investment products from offices on the premises of local financial institutions.
In addition the settlement order requires IPI to retain an independent compliance consultant to review the firm’s policies governing supervision of their Massachusetts-registered financial consultants and the sales of securities to persons over 65.
In November 2016, Massachusetts regulators charged IPI with using high pressure sales contests and selling unsuitable investment products to senior citizens who were depositors at community banks.
“This case highlights the dangers of aggressive sales culture that leaves older customers exposed to pressure to buy unsuitable investments,” Secretary Galvin said. “This is especially true when the broker dealer is operating out of a community bank.”
In February 2017, without admitting or denying, Investment Professionals agreed to pay FINRA $125,000 and to the entry of findings that from 10/2011-10/2013 it executed 167 non-bona fide municipal transactions without a change of beneficial ownership and that the execution of seven of the transactions were pre -arranged. FINRA also found that IPI did not have written supervisory procedures applicable to trading in limited partnership accounts. FINRA Case 20120313632.
Investment Professionals, Inc., has been a FINRA member since 1992 and operates over 300 branch offices and over 360 employees nationwide.
FINRA records disclose that Investment Professionals, Inc. has 15 prior final regulatory events.
If you have questions about an account handled by Investment Professionals, Inc. call to learn your 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.
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