Tag Archives: unit investment trusts

Investors Capital Corp. Discloses 22 Regulatory Issues-Withdraws FINRA Registration

UPDATE APRIL 2018-In December 2017, Investors Capital Corp. was hit with another FINRA regulatory sanction involving mutual funds. The firm was censured and agreed to pay $437,674 in restitution to customers who were overcharged commissions on mutual fund sales. FINRA Case 2016050259601. Investors Capital Corp. withdrew their FINRA registration in 1/18/2017 and is no longer in business.

UPDATE FEBRUARY 2017-As of 11/18/2016 Investors Capital Corp is no longer registered with FINRA or a national securities exchange. In October 2016, Investors Capital was censured, fined $250,000 and required to pay restitution to customers in connection with the short term trading of unit investment trusts (UITS) and Steepener Notes.

ORIGINAL POST JUNE 2016According to FINRA records,  stock brokerage firm Investors Capital Corp.  discloses 19 regulatory events that are final and 14 final arbitrations. According to recent press, there are plans to shut down the company in the coming months.

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.

Investors Capital Corp. is an independent full-service broker-dealer and has been a FINRA member since 1992. They are headquartered in Lynnfield, Massachusetts and employ over 500 brokers in over 300 offices nationwide.

During 2013-2014, RCS Capital Corp. (RCAP) acquired Investors Capital Corp. along with a number of other independent broker-dealers, including Cetera Financial Group. In early 2016 RCAP filed for bankruptcy and in spring 2016, Cetera announced that as part of its restructuring they would be merging Investors Capital and VSR Financial Services, known for its sales of alternative investments, into its Summit Brokerage Services unit.

Investors Capital Corps.’s recent regulatory events include:

  • 8/2014-New Hampshire regulators assessed a fine of $125,000 and required rescission of unsuitable sales of non-traded REITs. Regulators alleged that Investors Capital made telemarketing calls to residents in violation of FINRA telemarketing rules and sold unsuitable non-traded REITs.
  • 3/2014-FINRA alleged that the firm failed to have a proper process in place to ensure that prospectuses were delivered to purchasers of exchange traded funds (ETFs) and that the firm did not engage in training brokers about the features and risks of ETFs. A fine of $100,000 was assessed.

If you have questions about how to recover losses in an account you had at Investors Capital Corp., 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

Bernard T. Weber-Feltl & Co. Broker-Discloses Pending Customer Complaint Alleging Churning

MAY 2018 UPDATE-Minnetonka, MN

According to FINRA records, Bernard T. Weber  a broker who has been  registered  with Feltl & Company since  12/2006 , discloses five prior customer disputes, two final regulatory events, two outstanding judgement/liens and one termination 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 one of the prior customer complaints , a customer of Feltl and Co. alleged damages of $459,235 for churning, failure to follow instructions and misrepresentation regarding the purchase of penny stocks. That matter was settled in 11/2017 for $120,000.

Weber discloses outstanding IRS tax liens of $70,715 and $88,094.

Feltl & Co. Prior Regulatory Issues related to Penny Stocks, Front Running, Junk Bonds, Excessive Sales Charges and ETFs

The FINRA record of Feltl & Co. discloses 11 prior regulator events, including the following:

2017Feltl was censured and $150,000 fine to resolve allegations that they failed to supervise a broker who had conflicts of interest and sold shares of a penny stock, X Corp. , that  he personally owned around same time he was recommending that penny stock to customers, “front running”FINRA AWC 2010024882202

2016-Censured and fined $183,128 by the US Securities and Exchange Commission to resolve allegations that they violated industry rules related to the sale of junk bonds.

2016-Censured and fined $250,000 to resolve allegations Feltl failed to identify and apply sales-charge discounts to certain customers purchasing Unit Investment Trusts (UITs).

2014-Feltl & Co. was fined $1 million in 2014 for issues related to inadequacy of supervision in connection with the sale of penny stocks. See this for more. 

2014-That same year Feltl & Co. was fined $225,000 to resolve allegations that firm procedures related to the sale of ETFs were inadequate. See this for more.

If you have questions about  a brokerage account handled by Bernard T. Weber , call to discuss your legal options. You may be entitled to 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