VCA– Failure to Establish, Maintain and Enforce an Adequate Supervisory System

VCA Allegedly Failed to Establish, Maintain and Enforce an Adequate Supervisory System and Adequate Written Supervisory Control Procedures

VCA Securities, LP allegedly failed to establish, maintain and enforce an adequate supervisory system and adequate written supervisory control procedures reasonably designed to review and monitor the transmittals of funds from customer accounts to third-party accounts, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

The AWC further reports that VCA has been a FINRA member since August 2004, and that it has 13 registered persons, three non-registered persons, maintains its principal place of business in Dallas, Texas, and provides retail brokerage services.

VCA Fined $35,000 for Allegedly Failing to Establish, Maintain and Enforce an Adequate Supervisory System and Adequate Written Supervisory Control Procedures

VCA also failed to maintain and enforce an adequate supervisory system and adequate written supervisory control procedures reasonably designed to review and monitor the transmittals of funds from customer accounts to third-party accounts, according to the AWC.

As a result, VCA processed two unauthorized Letters of Authorization sent from a cyber-hacker of a customer’s email account resulting in $250,500 in wire transfers from a VCA customer account to an unauthorized third-party bank account.

Accordingly, VCA violated NASD Conduct Rules, and has been fined $35,000 by FINRA, according to the AWC.

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 a failure to establish, maintain and enforce an adequate supervisory system. 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 failure to establish, maintain and enforce an adequate supervisory system 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 (1168 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.