Lombard Securities Incorporated—Failure to Prevent Unsuitable Mutual Fund Switching and Supervision of the Sale of Certain ETF’s

Lombard Securities Incorporated Allegedly Failed to Prevent Unsuitable Mutual Fund Switching and to Supervise the Sale of Leveraged, Inverse, and Inverse-leveraged Exchange Traded Funds

Lombard Securities allegedly Failed to Prevent Unsuitable Mutual Fund Switching and to Properly Supervise the Sale of Leveraged, Inverse, and Inverse-leveraged Exchange Traded Funds (ETF’s), according to a recent Complaint from FINRA’s Department of Enforcement.

The Complaint further alleges that Lombard Securities allegedly failed to provide applicable sales charge discounts for 74 UIT trades in approximately 50 customer accounts, the aforementioned Complaint notes.

Lombard Securities alleged failure to provide applicable sales charge discounts allegedly resulted in approximately $25,037.23 in total missed discounts, the Complaint reports.

Lombard Securities Incorporated Censured and Fined $50,000 by FINRA

Lombard Securities, over the course of several years, allegedly failed to meet its supervisory responsibilities in several areas, according to a recent Complaint from FINRA’s Department of Enforcement.

For example, between August 2009 and March 2012, Lombard allegedly failed to establish, maintain, and enforce a supervisory system and written supervisory procedures, the Complaint notes.

By reason of the foregoing, Lombard violated NASD and FINRA Rules, and, hence, has been censured and fined $50,000 by FINRA, the Complaint reports.

The Peiffer Rosca Wolf Securities Lawyers Often Help Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of failure to prevent unsuitable mutual fund switching. 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 failure to properly supervise the sale of leveraged, inverse, and inverse-leveraged ETF’s are encouraged to 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 (1225 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.