Legend Securities Censured and Fined
According to the Financial Industry Regulatory Authority, on June 22, 2017, an OHO Decision became final in which Legend Securities, Inc. (CRD #44952, New York, New York) was fined a total of $475,000 and ordered to pay $884,436.24, plus interest, in restitution to customers.
FINRA’s sanctions were based on findings that Legend Securities reportedly failed to have a reasonable supervisory system and WSPs to ensure it timely reported customer complaints, filed timely amendments to Uniform Application for Securities Industry Registration or Transfer (Form U4) and Uniform Termination Notice for Securities Industry Registration (Form U5), reviewed incoming and outgoing email communications, and considered heightened supervision for brokers with histories of misconduct.
According to FINRA, the firm failed to report, or reported late, customer complaints to FINRA, and failed to file and timely file amendments to Forms U4 for seven of its registered representatives.
FINRA alleges the firm improperly charged customers in 34,313 securities transactions. The confirmations sent to customers described the charges as “handling fees,” which was misleading and inaccurate. As a result, the firm reportedly willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-10.
For FINRA’s full findings see FINRA Case #2012030422902.
This information, which is publicly available on FINRA’s website, has been provided by The White Law Group.
If you have questions about investments you made with Legend Securities the securities attorneys of The White Law Group may be able to help you. To speak with a securities attorney, please call 888-637-5510.
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 Vero Beach, Florida.
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