Tag Archives: failure to supervise

Melissa Strouse of First Financial Equity Corporation Sanctioned by FINRA for Inadequate Supervisory Procedures

UPDATE March 2017Melissa A. Strouse, CCO of First Financial Equity Corp., has consented, without admitting or denying the allegations made by FINRA, to the entry of certain findings and violations consistent with the Complaint filed by FINRA in July 2016(see below).

Those findings and conclusions include:

  • First Financial Equity Corp had numerous supervisory deficiencies, including failing to establish written supervisory procedures (WSPs) to address portions of its business, failing to have adequate WSPs, and failing to enforce certain of the WSPs it did have.
  • WSPs that were not enforced included procedures pertaining to discretionary accounts, excessive trading/churning reviews, and the requirement that the firm’s WSPs detail its actual processes and procedures.

Strouse was suspended for ten calendar days and fined $10,000.

ORIGINAL POSTING-July 2016

The FINRA records of Melissa A. Strouse  , a  stockbroker who was  employed by  First Financial Equity Corporation  disclose a pending regulatory event.

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 July 2016, FINRA filed a complaint naming Strouse, chief compliance officer,  and her member firm First Financial Equity Corporation alleging that the written supervisory procedures did not reflect the firm’s actual processes and procedures with respect to the review and or supervision of customer accounts. The FINRA complaint alleges numerous inadequacies with the firm’s supervisory procedures for the period January 2010-June 2013, including Strouse’s failure to review customer accounts for churning and excessive trading. FINRA Case 2013034966701.

First Financial Equity Corporation is based in Scottsdale, Arizona, has been a FINRA member since 1985 and has about 168 brokers in 14 branch offices and 59 non-registered office locations nationwide.

Investors who have suffered losses in an account at First Financial Equity Corporation  may be entitled to recover damages  through FINRA arbitration.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Humbert B. Powell-Wunderlich Securities Broker-Discloses Customer Dispute-NY

New York

According to FINRA records,  Humbert B. Powell, III ,  a stockbroker  who works for Wunderlich Securities ,  discloses  a pending customer dispute.

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 FINRA Case 15-02974, a customer alleges damages of $600,000 for gross negligence and  breach of fiduciary duty as supervisor. The time frame is 5/29/2014-10/2014.

Powell has employed at Wunderlich Securities  since 12/2012. Prior to that he worked for Sanders Morris Harris Inc.

If you have questions about an account handled  by Humbert B. Powell  , call for a no charge consultation.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

MidAmerica Financial Services (MFS) Sanctioned by Securities Regulators- Joplin, Missouri

 

On February 5, 2016, MidAmerica Financial Services entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from 2010-2014, MidAmerica Financial Services failed to commit sufficient time, attention and resources to compliance and supervision.

The FINRA AWC alleges, in part:

“…even after regulators brought multiple supervisory failurcs to the attention of the firm and its management, MFS’s failure to create a culture of’ compliance is evident in the firms numerous and repeatecl failures to establish and implement adequate supervisory systems – for, among other things, sales of private offerings, review and retention of electronic correspondence, wholesaling activities, private securities transactions of registered individuals, sales of variable annuities, receipt of gifts and gratuities, and use of social-media sites – all of which constitute discrete violations of NASD Conduct Rule 3010 and FINRA Rule 2010. In addition, MFS violated FINRA Rules 2330 and 3220, NASD Rule 3040, Section 17(a) ofthe Securities Exchange Act of 1934, Exchange Act Rule 17a-4, FINRA Rulfe 451 1, and MSRB Rule G-27.”

AWC No.  2014039169401

MidAmerica Financial Services   was censured and fined $150,000.

On December 2, 2015, FINRA cancelled the registration of MidAmerica Financial Services for failure to pay FINRA fees.

MidAmerica Financial Services had been a FINRA member since 1999, with headquarters in Joplin, Missouri and branch offices across the country.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Finance 500 Broker Sanctioned by Securities Regulators for Failure to Supervise Florida Office

December 29 , 2015

Paul J. Savage entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Finance 500, Inc. as head of the office of supervisory jurisdiction supervisor for the Florida branch office, he failed to carry out his duties in each of the supervisory roles he held with the firm.

Finance 500 filed a Uniform Termination Notice permitting Savage to resign in October 2014, stating the to be “in connection with branch supervision, supervision of Firm trading activities and account due diligence.”

According to FINRA, the Florida branch focused almost exclusively on trading penny stocks as a market maker for both the Firm’s proprietary trading accounts and for its retail customers. By focusing on penny stock trading, the Florida branch dealt in a segment ofthe market susceptible to fraudulent activity. Despite the risks, Savage did not mitigate the risks associated with this business model.

AWC No.  2013036837802

Savage was fined $10,000 and suspended from association with any FINRA member in any capacity for six months.

Finance 500 is headquartered in Irvine, CA. They have been a FINRA registered broker dealer since 1982 and have about 29 registered individuals in five branch offices.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Redridge Securities and CEO Brent Hunt Sanctioned by Securities Regulator

February 3, 2015

Redridge Securities and Brent D. Hunt, its CEO and chief compliance officer  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that they failed to establish and enforce supervisory controls that were reasonably designed to detect unauthorized transfer activities which permitted one of their princials to convert more than one million dollars from customer accounts.

Redridge Securities was censured and fined $60,000. Brent Hunt was suspended as a principal for six months and fined $17,500.

FINRA Case # 201402735801

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870