failure to supervise

SagePoint Financial Ordered to Pay Over $1.6M for Early Unit Investment Trust Rollovers That Cost Investors

Published on: June 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Says SagePoint Financial Brokers Unsuitably Recommended Early UIT Rollovers

The Financial Industry Regulatory Authority (FINRA) is ordering SagePoint Financial to pay over $1.6M in fines and restitution after it executed over $895 million in unit investment trust (UIT) transactions that resulted in more than $17.2 million in sales charges.

Of these UIT transactions, over $203.7 million of the proceeds were from sales that occurred over 100 days before a UIT’s maturity date. FINRA found that these unsuitable early rollovers caused customers to pay over $1.3 million in sales charges that they wouldn’t have otherwise if only they’d held onto their UITs until they matured.

SunTrust Investment Services to Pay $634K For Alleged Inadequate Supervision Of Unsuitable ETF Sales Practices

Published on: June 5, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Accuses SunTrust Investment Services of Failing to Properly Supervise Brokers

The Financial Industry Regulatory Authority (FINRA) has ordered SunTrust to pay $634K to settle charges accusing the broker-dealer of not properly supervising 17 of its brokers when they recommended that customers hold non-traditional exchange-traded funds (ETFs) for long periods–a practice that can lead to losses especially when there is market volatility.

Of this settlement, $50K is a fine and $584,466 is restitution. SunTrust Investment Services, which is owned by Trust Bank, agreed to the sanctions but without denying or admitting to the self-regulatory organization’s (SRO’s) findings.

FMS Bonds Accused of Overconcentrating Texas Investor’s Portfolio in Bad Bonds, Including Frontier Communications Investments, Causes $1M in Losses

Published on: May 26, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealer Allegedly Misled Novice Investor And Placed Funds In Risky Junk Bonds

FMS Bonds, formerly called First Miami Securities, is the subject of yet another investor fraud lawsuit. This time it’s for misleading an inexperienced bond investor from the Dallas, Texas area and causing him to overconcentrate his portfolio with low rated, long-term “junk” bonds and other bad bonds, including those issued by Frontier Communications. The account eventually blew up, causing the claimant to suffer approximately $1M in losses.

Our Texas investor lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are representing this investor in Financial Industry Regulatory Authority (FINRA) arbitration to recover these losses. The hearing will take place in the Dallas area.

Citigroup, LPL Financial, Morgan Stanley, JP Morgan Securities, and Merrill Lynch Fined $1.4M for Failure to Reasonably Supervise

Published on: March 2, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealers Accused of Not Properly Supervising Custodial Accounts

The Financial Industry Regulatory Authority (FINRA) announced that it has fined five major firms $1.4M in total for not reasonably supervising custodial accounts. The broker-dealers are:

Citigroup (C), which will pay $300K.

Shepherd Smith Edwards and Kantas Investigates NEXT Financial Group Over Non-Traded REIT Sales

Published on: January 6, 2020 | by Shepherd Smith Edwards & Kantas, LLP

NEXT Financial Group Sold Unsuitable REITs To Investors, Including Older Seniors

If you were an investor who suffered losses in Real Estate Investment Trusts (REITs) that were recommended and sold to you by a NEXT Financial Group broker, Shepherd Smith Edwards and Kantas (SSEK Law Firm) wants to talk to you.

The Houston-based independent brokerage firm was recently fined $150K by the Massachusetts Securities Division for selling REITs to investors even when these investments were not suitable for them.