LFA—Failure to Adequately Supervise the Activities of a Registered Rep
LFA Allegedly Failed to Adequately Supervise a Registered Rep Who Purportedly Engaged in Unsuitable Penny Stock Trading
LFA allegedly failed to adequately supervise a registered rep, known only as PT, who supposedly engaged in unsuitable penny stock trading, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).
PT also allegedly placed over 1,700 penny stock orders in connection with at least 15 customers, which he marked unsolicited but many of which appear to have been solicited, the AWC notes.
What is more, LFA also allegedly failed to supervise PT as he allegedly recommended penny stock transactions that were unsuitable because they led to overconcentration of penny stocks in the customers’ accounts, and were contrary to their stated investment objectives, regarding four customers, the AWC reports.
LFA Censured and Fined $90K by FINRA for Failure to Adequately Supervise Reps
LFA, upon receipt of the first customer complaint in September 2011, allegedly suspended PT’s trading authority, and PT was terminated for violating LFA policy with respect to penny stock transactions in October 2011, the AWC reports.
Furthermore, from September 2011 through October 2012, LFA allegedly received 15 complaints relating to PT and LFA paid approximately $616,109 in settlements, the AWC notes. As a result of the aforementioned behavior, LFA has violated FINRA Rules, and has been censured and fined $90,000 by FINRA, the AWC notes.
One should also note that, according to the AWC, LFA neither admitted nor denied the FINRA findings.
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 a lack of adequate supervision of registered reps. 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 a lack of adequate supervision of registered 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.