{"id":18175,"date":"2019-07-11T10:56:51","date_gmt":"2019-07-11T15:56:51","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=7262"},"modified":"2019-07-11T10:56:51","modified_gmt":"2019-07-11T15:56:51","slug":"summit-to-pay-over-880k-for-excessive-trading-inadequate-supervision","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/summit-to-pay-over-880k-for-excessive-trading-inadequate-supervision\/","title":{"rendered":"Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision"},"content":{"rendered":"<p>\t\t\t\tFor alleged <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/broker-misconduct\/failure-to-supervise\/\" target=\"_blank\" rel=\"noopener noreferrer\">supervisory failures <\/a>and excessive trading by one of its former brokers, Summit Brokerage Services, Inc. has been ordered to pay over $880K&#8211; $558K in restitution with interest to customers that were harmed, \u00a0as well as a $325K fine to the <a href=\"http:\/\/www.finra.org\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Industry Regulatory Authority (FINRA)<\/a>. The broker-dealer consented to the entry of the findings but did not admit to or deny wrongdoing.<\/p>\n<p>According to the SRO, from 1\/2012 to 3\/2017, Summit neglected to review certain automated alerts for the trading activities of its registered representatives, of which there are more than 700. Because of this, one of its brokers, was able to excessively trade in accounts belonging to 14 clients, including 533 trades on behalf of one customer. This compelled her to pay over $171K in commissions.<\/p>\n<p>The broker\u2019s excessive trading resulted in 150 alerts for this type of activity, none of which were purportedly reviewed by Summit. FINRA has since barred the former registered rep.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/summit-to-pay-over-880k-for-excessive-trading-inadequate-supervision\/\"  title=\"Continue Reading Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>For alleged supervisory failures and excessive trading by one of its former brokers, Summit Brokerage Services, Inc. has been ordered to pay over $880K&#8211; $558K in restitution with interest to customers that were harmed, \u00a0as well as a $325K fine to the Financial Industry Regulatory Authority (FINRA). The broker-dealer consented to the entry of the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7094,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3774,3775,3739,3776,3777],"tags":[3778],"class_list":["post-18175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broker-fraud","category-broker-dealers","category-churning","category-finra","category-finra-settlements","category-inadequate-supervision","tag-summit-brokerage-services"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision &#8212; Investor Lawyers Blog &#8212; July 11, 2019<\/title>\n<meta name=\"description\" content=\"Summit Brokerage Services has been ordered to pay over $880K in fines for alleged supervisory failures and excessive trading by one of its former brokers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/summit-to-pay-over-880k-for-excessive-trading-inadequate-supervision\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision &#8212; Investor Lawyers Blog &#8212; July 11, 2019\" \/>\n<meta name=\"twitter:description\" content=\"Summit Brokerage Services has been ordered to pay over $880K in fines for alleged supervisory failures and excessive trading by one of its former brokers.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/05\/gavel-judge-overlay.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision &#8212; Investor Lawyers Blog &#8212; July 11, 2019","description":"Summit Brokerage Services has been ordered to pay over $880K in fines for alleged supervisory failures and excessive trading by one of its former brokers.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/summit-to-pay-over-880k-for-excessive-trading-inadequate-supervision\/","twitter_card":"summary_large_image","twitter_title":"Summit to Pay Over $880K for Excessive Trading, Inadequate Supervision &#8212; 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