FINRA Sanctions Coastal Equities for Allegations of Failure to Supervise Unsuitable Investments
According to a Letter of Acceptance Waiver & Consent (AWC), broker-dealer Coastal Equities Inc., based in Wilmington, Delaware, reportedly said it will pay back $280,000 in restitution to clients for allegedly failing to supervise a series of alleged unsuitable trades in elderly and retired clients’ accounts.
FINRA alleges that despite “numerous red flags,” the firm failed to reasonably supervise a registered representative, who recommended excessive and unsuitable trades in the accounts of four customers from 2016 through 2018.
The AWC, dated November 9, refers to the advisor who was reportedly registered with Coastal Equities from September 2015 to July 2018, only as S. A.
Filing a Complaint against your Brokerage Firm
Brokers have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered. Furthermore, brokers are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading, that violate securities laws and regulations.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
This information is publicly available on FINRA’s website and provided to you by The White Law Group.
If you are concerned about your investments with Coastal Equities, Inc., please call the offices at 888-637-5510 for a free consultation with a securities attorney.
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.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.