Scottrade—Failure to Maintain and Enforce Adequate Supervisory System

Scottrade Allegedly Failed to Maintain and Enforce an Adequate Supervisory System, Failing to Obtain Customer Confirmation to Third Party Wires of Less than $200,000

Scottrade allegedly failed to maintain and enforce an adequate supervisory system that was adequately designed to confirm all wire transmittals from customer accounts to third party accounts, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

For example, regarding third party wire transfers of sums less than $200,000, the AWC further alleges that Scottrade purportedly failed to obtain customer confirmation in any manner.

Scottrade Censured and Fined $300,000 Regarding Its Deficient Supervision of Third Party Wires

Regarding third party wires in amounts between $200,000 and $500.000, Scottrade allegedly required producing branch office managers to improperly confirm said wire transfers with customers via telephone calls, according to the AWC.

From October 3,2011 through October 21, 2013, Scottrade allegedly processed 17.413 third party wires in the aggregate amount of $883,944.371, according to the AWC.

As a result of the aforementioned behavior, Scottrade allegedly violated FINRA and NASD Rules, and subsequently has been censured and fined $300,000.

The Peiffer Rosca Wolf Investor Rights Lawyers Helping Investors

The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of failure to provide adequate supervisory systems. 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 provide adequate supervisory systems may contact the investor rights 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 (1157 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.