Strategic Planning Group Censured & Fined $225,000
Massachusetts state regulators have reportedly censured and fined Strategic Planning Group Inc., a registered investment adviser, for alleged conflicted advice involving stock in Ecoark Holdings.
According to the consent order, two principals of the Wellesley, MA firm reportedly recommended buying stock of Ecoark Holdings in which they allegedly had an interest.
The RIA’s principals purportedly made recommendations to clients to purchase stock in Ecoark Holdings, a company for which the two purportedly served as consultants and in which they reportedly had a financial interest, according to Massachusetts securities regulator, William Galvin.
Strategic Planning Group’s investment adviser representatives recommended that clients invest up to 5% of their portfolio in Ecoark, in which one principal had allegedly invested $800,000 and which the firm’s chief compliance officer, had purportedly invested approximately $300,000, according to a consent order.
Forms filed by the firm reportedly stated that the firm did not buy or sell securities that it also recommended to its advisory clients, according to the complaint.
The firm has been has been censured and fined $225,000.
Investigating Potential Lawsuits
The White Law Group is investigating potential lawsuits involving Strategic Planning Group and the liability they may have for improper sales of stock in Ecoark Holdings.
Brokerage firms and RIAs are required to perform due diligence on any offering they recommend. They must ensure that all recommendations are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.
If a firm fails to perform due diligence or makes an unsuitable recommendation, a broker-dealer can be held responsible for any losses in a FINRA arbitration claim and an RIA can be held responsible either in a private arbitration or in court.
If you have concerns regarding your investment in Ecoark Holdings and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors, please visit https://www.whitesecuritieslaw.com.