Peter E. Cunningham, StockCross Financial Services Reportedly Fined $225,000 over UITs
According to a consent order,the Massachusetts Securities Division has fined StockCross Financial Services and broker Peter E. Cunningham $225,000 over alleged trading practices involving unit investment trusts (UITs).
According to the order, although Cunningham had reportedly been on heightened supervision since 2017, he allegedly continued the practice of short term trading of UITs since 2012, to the detriment of investors. He reportedly has six customer complaints filed against him, according to his FINRA BrokerCheck report.
Short-term trading involves the sale of UITs before the date of maturity, often using the proceeds of the sale to purchase other UITs.
This typically leaves the investor unable to collect the full proceeds of the investment, while increasing the commissions received by the broker.
According to the consent order, StockCross will reportedly be required to offer restitution to the Massachusetts investors who were involved. Cunningham has purportedly agreed to attend securities industry education courses.
The foregoing information has been provided by The White Law Group.
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