March 2018- Charlotte, N. Carolina
The FINRA records of Joseph L. Cotter , a stockbroker who is currently not registered and who was last employed by Petersen Investments disclose a recent regulatory matter resulting in his suspension, 2 prior customer disputes, a pending investigation and 2 terminations from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In November 2017, to resolve allegations that he engaged in excessive trading and unsuitable trading in a customer account, Cotter was suspended for 9 months (11/6/2017-8/5/2018) , ordered to pay disgorgement of $100,549 and assessed a fine of $15,000.
FINRA found that Cotter exercised de facto control over the account an unsophisticated lady client and used this control to excessively trade the account in a manner that was inconsistent with the her investment objectives, financial situation and needs. As a result the customer’s account lost nearly $400,000 and generated commissions of over $100,000. FINRA Case 220166049316301.
Cotter’s FINRA record discloses that in April 2017 FINRA advised that they are forwarding examination 20160493163 to FINRA Enforcement.
In 1/2017, a customer of Cotter’s prior employer, NEXT Financial Group, was paid $328,646 to resolve allegations that Cotter mismanaged her account from 2013-2016.
Joseph L. Cotter was discharged by NEXT Financial Group on 3/18/2016 for excessively trading a customer account. Cotter was employed by NEXT Financial 6/2008-3/2016.
NEXT FInancial Group made the following allegation on Cotter’s official FINRA record:“The firm conducted an internal review of the trading activity in a customer’s accounts and found the level of trading activity to be excessive in light of the customer’s profile and the character of the account.”
In May 2017 Cotter was allowed to “voluntarily resign” from Petersen Investments who made the following allegation on his FINRA record:“On April 2017, FINRA notified Mr. Cotter that examination 20160493163 was being referred to its Enforcement Division for further review.”
If you have losses in an account handled by Joseph Cotter, contact us for a no charge consultation to learn how you may be able to recover damages from his prior employer.
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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