Cantella & Co. Charged Customers Steep Commissions, FINRA Alleges

ohio stockbroker fraud attorneysCantella & Co., of Boston, Massachusetts, charged its customers excessive commissions on approximately 1,270 equity transactions, and 99 options transactions, a FINRA Letter of Acceptance, Waiver and Consent (AWC) alleges. In addition, from January 2006 through September 2011, whilst Cantella & Co., which currently employs approximately 210 registered representatives, charged its customers excessive commissions ranging from 15% to 74%, it also failed to establish, maintain and enforce a proper supervisory system to review commissions charged, the AWC reports.

Cantella & Co. Order to Pay Approximately $82,000 in Restitution

As a result of the aforementioned actions, the AWC further alleges, Cantella & Co. broke several FINRA Rules. Hence, FINRA reportedly fined Cantella & Co. $50,000, required them to pay restitution of $81,973.65 plus interest, and issued the firm a censure as well. A cursory review of Cantella’s history, unfortunately, also reveals several disputes with FINRA’s Department of Enforcement:

·         In February 2005 Cantella & Co. was fined $50,000 for failing to supervise two registered agents who were operating a hedge fun as part of an outside business.

·         In July 2005, Cantella & Co. was fined $100,000 for failing to properly supervise its employees and agents.

·         In June 2007, Cantella & Co. was also fined $15,000 for failing to report accurate execution times on order tickets and failure to have supervisory procedures in place to prevent like transactions.

·         In February 2007, Cantella & Co. was fined $65,000 for failure to report customer complaints, reporting TRACE eligible transactions late, and filing customer complaints late.

·         In July 2005, Cantella & Co. was fined $100,000 for failing to reasonably supervise its employees and agents.

·         In September 2007, Cantella & Co. was fined $6,000 for failing to report certain purchases and      transactions as required by the SEC and FINRA.

Investment Fraud Lawyers Investigating

The Peiffer Rosca Wolf securities attorneys often represent investors who lose money as a result of investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1252 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.