Hantz Financial Services, Inc. (CRD #46047, Southfield, Michigan) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $50,000.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that the firm failed to establish and maintain an adequate supervisory system to ensure that it immediately recorded on the firm’s books and records checks its customers mailed to the firm. The findings stated that supervisory system deficiencies were exploited by a registered representative who embezzled approximately $2.6 million from customers and contributed to the firm’s failure to detect his scheme; the representative exploited the firm’s check handling procedures by taking control of customer checks totaling approximately $850,000 and depositing the customer funds into his own bank accounts, without the checks being logged in the firm’s tracking system.
FINRA registered broker-dealers are responsible for supervising their agents and can be help liable for the actions of these agents if it can be demonstrated that the proper supervision could have discovered the improper actions of the agent.This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
If you have questions about investments you made with Hantz Financial Services, Inc., the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at https://www.whitesecuritieslaw.com.