Investors Capital Corporation Investment Losses
According to FINRA, Investors Capital Corporation (ICC), Lynnfield, Mass, through certain of its registered representatives, allegedly recommended unsuitable short-term trading of unit investment trusts (UITs) and Steepener Notes in the accounts of 74 customers. In addition, ICC allegedly failed to apply sales charge discounts to certain customers’ eligible purchases of UITs.
According to FINRA, the unsuitable UIT and Steepener recommendations and missed UIT sales charge discounts occurred in part because ICC lacked adequate systems and procedures to supervise the sales of UITs and Steepeners.
ICC consents to a censure, a fine in the amount of $250,000; and restitution to customers in the amount of $841,532.97, according to FINRA.
Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that a firm violated FINRA rules and failed to adequately supervise their advisors, the firm can be held responsible for any resulting losses in a FINRA arbitration claim. The White Law Group is investigating the liability that ICC may have for losses sustained by their clients.
Recovery of Investment Losses
The foregoing information is being provided by The White Law Group. 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 Franklin, Tennessee.
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