FINRA recently announced that Joel Blumenschein, president of Freedom Investors Corp. and a board member of the Financial Industry Regulatory Authority Inc., has been suspended as a principal of his firm for three months and fined $30,000 in a failure-to-supervise case.
Finra alleged that Mr. Blumenschein failed to supervise a broker who engaged in unsuitable penny stock trades, and after the affected client complained, the firm improperly agreed to guarantee the client against losses. As part of that guarantee, Finra said Freedom Investors got the customer to agree not to file a complaint with Finra.
Finra also claims that an employee of the firm doctored records of an examination report of the broker.
Mr. Blumenschein settled the case this week, without admitting or denying the allegations.
If you have questions about investments you made with Freedom Investors Corp., the securities attorneys of The White Law Group can help. For a free consultation call 312/238-9650.
The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.