September 8, 2011 Comments (0) Blog, Securities Fraud

FINRA Fines Point Capital Inc., John Thomas Financial, First Midwest Securities, Inc., A&F Financial Securities, Inc., and Solomon Whitney LLC for Excessive Handling Fees

(Last Updated On: July 17, 2015)

According to a recent FINRA press release, Point Capital Inc., John Thomas Financial, First Midwest Securities, Inc., A&F Financial Securities, Inc., and Solomon Whitney LLC were “understating the amount of total commissions charged to customers in trade confirmations and on fee schedules by mischaracterizing a portion of the commission charges as fees for handling services.” FINRA found that these “handling fees” served as an additional “transaction based remuneration for the firm” because the fees charged were well in excess of the cost of the “handling” the services rendered.

FINRA found it necessary to fine these firms a total of $910,000. These fines come as a result of a “targeted review of improper fees charged by broker-dealers.” FINRA found that “in some cases” firms were earning “a substantial percentage of their revenue from these fees.”

Point Capital, Inc. was fined $300,000 and was found to be charging clients as much as $95 per trade. John Thomas Financial was fined $275,000 and was charging fees as high as $75 per trade. First Midwest Securities, Inc. was fined $150,000 with handling fees as high as $99 per transaction. A&F Financial Securities, Inc. was fined $125,000 and Salomon Whitney LLC was fined $60,000. They were charging their clients as much as $65 and $69 per trade respectively.

If you have questions about your investments with Point Capital Inc., John Thomas Financial, First Midwest Securities, Inc., A&F Financial Securities, Inc., or Solomon Whitney LLC, please call The White Law Group’s Chicago office at 312/238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

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