Fidelity Brokerage Services—Dishonest and Unethical Conduct
Fidelity Brokerage Allegedly Engaged in Dishonest and Unethical Behavior
Fidelity Brokerage Services allegedly engaged in dishonest and unethical behavior for purportedly allowing unregistered investment advisers to make trades through the Fidelity broker-dealer platform, thereby generating fees for both the firm and the unregistered advisers, according to a statement from secretary of the commonwealth William Galvin.
No less than thirteen unregistered Massachusetts investment advisers used Fidelity’s platform, statements from secretary of the commonwealth William Galvin report.
For example, only one of the aforementioned unregistered advisers reaped more than $730,000 in fees on trades for over ten years, according to statements from Secretary of State William Galvin in an administrative complaint served against Fidelity Brokerage Service LLC.
Over 20 Fidelity Customers Allegedly Paid Unregistered Adviser $732,000 in Advisory Fees over 10-year Period
In one gleaming example, over 20 Fidelity customers paid one unregistered investment adviser, who traded on their behalf, $732,000 in advisory fees over a 10-year period, according to the aforementioned complaint.
The complaint goes on to allege that Fidelity knew that said rep was acting as an adviser during that entire period and encouraged his trading activity by providing the purported adviser, who made thousands of trades for the accounts of his clients, including presents such as frequent flyer miles and tickets to a professional sporting event.
Finally, Fidelity allegedly had policies implemented, since 2011, that specifically noted red flag risk warnings for specific levels of third-party trading, the complaint notes. Those red flags, however, were ignored until recently, according to the statement from Mr. Galvin.
The Peiffer Wolf Carr & Kane Securities Lawyers Often Assist Investors
The Peiffer Wolf Carr & Kane securities lawyers assist investors who lose money as a result of unethical and dishonest behavior which allowed unregistered investment advisers to make trades. 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 unethical and dishonest behavior by unregistered reps are encouraged to contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.