The White Law Group is investigating potential securities claims involving Summit Brokerage Services (CRD#: 13475, Boca Raton, FL)
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.
Broker Misconduct and Customer Complaints
There have been several cases of registered representatives employed by Summit Brokerage Services who were allegedly involved in broker misconduct and fraudulent activities.
October 2017 – FINRA barred Summit Brokerage advisor Kenneth B. Neuner from the securities industry in connection with an investigation into his unauthorized exercise of discretion purported by his member firm on a Form U5.
Neuner was reportedly discharged from Summit Brokerage Services in Dallas, Texas in March 2017 for unauthorized exercise of discretion.
May 2017 – Financial Industry Regulatory Authority (FINRA), reportedly barred former Summit Brokerage financial advisor Christopher S. Jorgensen from associating with any FINRA member at any time for allegedly refusing to provide testimony in an investigation.
According to his BrokerCheck profile, Jorgensen was a registered representative with Summit Brokerage in Setauket, New York from January 2012 until April 2017 when he was reportedly dismissed after allegations. Jorgensen reportedly has 4 customer complaints on his broker report- allegations include unauthorized trading, excessive trades and unsuitable investments, over-concentration and failure to follow instructions.
March 2016 – Andrew Todd Yocum was barred from the securities industry in connection with an investigation into whether he effected unauthorized transactions, exercised discretion without written authorization, and recommended unsuitable concentrated purchases of energy sector securities to senior investors, according to FINRA.
He was registered with Summit Brokerage Services in Lady Lake, FL from 2015 to 2016, and prior that he was affiliated with Morgan Stanley in the Villages, FL for six years. He reportedly has 34 customer complaints on his broker record.
FINRA Censures and Fines Summit Brokerage Services
Summit Brokerage Services has also reportedly had issues with regulators.
July 2019 – The Financial Industry Regulatory Authority fined Summit Brokerage Services over $880,000 for supervisory failures tied to automated trade alerts. This includes $558,000 to be paid to clients with accounts that had excessive trading by former advisors with the firm who are now reportedly barred by FINRA.
Between 2012 and 2017, Summit reportedly failed to review some trade alerts used to identify excessive trading and did not uncover one advisor who conducted such activities affecting 14 clients, according to FINRA, who identified the advisor as “CJ.” One advisor placed close to 535 trades for a retired client, who paid more than $171,000 in commissions over three years.
August 2017 – Summit and four other broker-dealers owned by Cetera Financial Group reportedly reached settlements with the Financial Industry Regulatory Authority totaling $3.3 million for failing to supervise the application of mutual fund sales charge waivers to eligible clients in retirement plans and at charitable organizations.
According to FINRA, over an eight-year period, from July 2009 until July 2017, the B-Ds allegedly failed to properly supervise sales charge waivers to clients in retirement plans and charitable organizations.
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 Summit Brokerage Services 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.