Steven Effron, registered as a financial advisor with Summit Brokerage Services, Inc. from July 2007 through March 2009, has been suspended from FINRA for a period of four months. Effron consented to the findings that while he was registered with Summit he engaged in outside business activities without notifying his broker dealer. Further, he apparently placed variable annuity transactions through Summit for customers of a registered representative of another brokerage firm without discussing these transactions with the customers, and after receiving the signed applications, he submitted them to his firm for processing. Finally, FINRA’s findings found that Effron received commissions from the transactions and forwarded them most of the commissions to the representative at the other firm without advising Summit of the arrangement. Based on FINRA’s findings it would appear that perhaps Summit failed to properly supervise Effron considering he was able to purchase annuities without the customers’ authorization and then pay the commissions back to a broker that didn’t even work at Summit.
If you have questions about an annuity or other investment sold to you by Effron or Summit, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago office at 312-238-9650.
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