The White Law Group is investigating potential securities claims involving The Investment Center, Inc. (CRD# 17839, Bedminster, NJ)
The Investment Center, Inc., headquartered in Bedminster, NJ, is a national financial advisory firm. According to its FINRA Broker Report, the firm reportedly has 13 disclosure events on its broker record including 8 regulatory events, and 5 arbitrations.
Texas Securities Board Charges The Investment Center Inc. with Failure to Supervise
August 2016 – The Texas State Securities Board ordered The Investment Center, Inc. a securities dealer located in Bedminster, New Jersey and registered in Texas to pay $50,000 for allegedly failing to supervise a broker who overloaded clients’ accounts with energy stocks.
According to the consent order, between January 2010 and March 2014 the representative recommended that certain clients purchase securities that raised red flags related to the suitability of the Agent’s recommendations for those clients based on their investment profiles.
In addition, certain clients at the firm held 95% of their total investible assets in equities in the energy sector, at the agent’s recommendation, the order alleges. In some instances, all of those shares were in one company, despite the clients’ low tolerance for risk, according to the document.
Despite the red flags raised by the unidentified agent’s sales activity, The Investment Center, Inc. allegedly failed to reasonably supervise this activity.
Broker Misconduct and Customer Complaints
There have been several cases of registered representatives employed by The Investment Center Inc. who were allegedly involved in broker misconduct and fraudulent activities.
May 2018 – The Investment Center advisor Leon Vaccarelli, of Waterbury CT, was indicted and later convicted on 12 counts of fraud and money laundering related to an investment scheme that prosecutors say defrauded investors of more than $1 million.
Vaccarelli allegedly deposited customers’ money through his financial advisory and brokerage service, Lux Financial Services, into his own personal account and business bank accounts, instead of investing the funds, as promised. The scheme reportedly took place between 2011 and 2017.
He was accused of using the money to pay business and personal expenses, including tuition and mortgage payments.
According to his FINRA BrokerCheck report, Vaccarelli was registered with The Investment Center in Waterbury, CT from February 2011 until August 2017. He has 15 disclosure events listed on his broker report, including 10 customer complaints. Vaccarelli is not currently registered as a broker.
Investigating Potential Claims
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. 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.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Free Consultation with a Securities Attorney
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
If you have concerns regarding investments you purchased through The Investment Center Inc. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.