August 15, 2018 Comments (0) Blog, Current Investigations

MA Regulator Charges Stockcross & Broker with improper UIT Trades

Peter Cunningham
(Last Updated On: August 15, 2018)

Peter Cunningham – StockCross Financial Services, Beverly Hills, CA

William Galvin, commissioner of the Commonwealth of Massachusetts, has reportedly charged StockCross Financial Services and Peter Cunningham with allegedly engaging in improper trading practices.

According to the complaint, Peter Cunningham of Los Angeles, CA purportedly recommended that customers, 30% of whom were Massachusetts investors, buy and then sell unit investment trusts before their maturity date. That resulted in losses for investors and more commissions for the broker and the firm, regulators allege.

StockCross and Cunningham, allegedly profited $750,000 in commissions from short-term UIT trades made from Massachusetts residents’ accounts alone, according to Galvin. He also reportedly charged StockCross with failure to reasonably supervise its agent.

According to Galvin, Cunningham was allegedly deeply in debt, having had his wages garnished by court orders, and being served with at least two foreclosure notices on his home.

​The complaint seeks an order to cease and desist, censure, restitution to fairly compensate investors, an administrative fine, revocation for Cunningham, and a requirement that StockCross hire an independent compliance consultant to review its supervisory procedures.

Failure to Supervise

The White Law Group is investigating the liability that Cunningham’s former employers may have for his alleged actions.

Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that the firm failed to properly supervise Cunningham, the firm may be held responsible for investment losses in a FINRA arbitration claim.

If you have invested with Peter Cunningham and StockCross Financial Services and are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our offices at 888-637-5510.

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 Vero Beach, Florida.

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

 

 

 

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