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FINRA Sanction 3 Firms for Failing to reasonably Supervise their Brokers.

Robert W Baird & Co. - Read The AWC, https://drive.google.com/file/d/1AZcKfuvULRmy035pDt72p4TarV3_jhEt/view?usp=share_link
Raymond James and Associates - Read The AWC, https://drive.google.com/file/d/19Jt3a7rWYdE8MmUHRYt7A5e92DV4wVh-/view?usp=share_link
Janney Montgomery Scott LLC - Read The AWC , https://drive.google.com/file/d/1JGsxSxbwKLyYRR5MWIvudY6p9qyMZxN6/view?usp=share_link

FINRA Rule 3110(a) requires a member firm to establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.

Although there were Red Flags of misconduct, the firms failed to act on them.

Compliance with the industry rules and regulations have 2 goals.
To protect customers from harm
To protect the Firms from violating FINRA rules and regulations

Proactive management goes a long way to ensure the investing public that their interests are at the forefront of recommendations made by their brokers.

The best way to protect yourself is to educate yourself about financial matters. Use resources like the FINRA website for Investors. AARP has resources along with most States' Consumer Protect sites.

Hiring a lawyer or accountant to review an investment opportunity is cheaper than having your investment vanish.

Ask your accountant to review your investments, or have your accountant call CPAA+ on your behalf.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.

A Broker Churned an Account generating over $134,000 in Commissions

A problem that has plagued the brokerage industry from the beginning is “Excessive Trading,” more commonly known as CHURNING. When a Broker gains the trust of a client and, in effect, gains de facto control of the client’s account, the Broker can take advantage of the client.

Often these unscrupulous trades are unsolicited and involve older clients. Research tells us that the older one becomes, the less you are to question the trading and frequently consent to activity that is not in their best interest. Unfortunately, bad actors know this and may take advantage of older clients.

In the case brought against broker Desir, just think what the outcome would have been if the client had passed away months before the damage was discovered? The broker would have most likely got away with his bad deeds thus harming the clients' heirs. It is for that reason I believe the executor should always review the activity that has taken place in the deceased accounts.

Read the Palmery Robert Desir AWC Case, https://cpaaplus.com/real-world-samples-financial-fraud/a-broker-churned-an-account-generating-over-134000-in-commissions-59.html

AARP has been a big advocate helping to push legislation and educating members. Often investors are just too trusting of their broker or advisor.

Don’t let your guard down; Also talk to your parents. Keep the conversation alive. Financial Fraud is a Risk to All.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.

Learn more at https://cpaaplus.com/

An Often Overlooked Resource For Investors Who Are Victims Of Financial Malfeasance

Law Schools around the country offer their students the opportunity to get hands-on experience by becoming a member of one of their Clinics. I want to bring to your attention the “Investor Rights Clinics”.

Often these Clinics are the only resource that an investor has when faced with losses due to unsuitable recommendations.

Investor rights clinics help you file a claim in arbitration through FINRA. Arbitration claims can be easier and less expensive than going through the courts, but it takes a lot of work on behalf of the attorney and an expert if needed.

So, if you believe you have been harmed but your losses are less than $50,000, most attorneys will not want to represent you. Often these cases can be as much work as a case for $500,000 and the cost to litigate the case might be greater than a favorable settlement.

If you’re concerned that representation from an Investor Rights Clinic will be of poor quality, let me tell you that is the furthest from reality. These students and their supervising professors put in an insurmountable amount of work.

I testified at two hearings in the last year for the Investor Rights Clinic at Fordham University Law School and heard one of the most outstanding closing arguments from one of the students. To be sure, you will get good representation. You can read one of the awards here: https://www.fordham.edu/info/26426/clinic_news

Below is a link to the SEC website that lists the current clinics across the country:

https://www.investor.gov/protect-your-investments/get-help/arbitration-and-mediation-clinics

Help me get the word out by sharing, forwarding, commenting, and tagging this critical information to any and all your friends. You never know when one of them or their parents needs someone to talk to about losses they have sustained from an unsuitable recommendation.

Thank you in Advance.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.