Phillip Hinze, of Mendota Heights, Minnesota, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for placing unauthorized trades in a customer’s account in a one week time span without the customer’s authorization.
FINRA investigators found that while registered with Oak Ridge Financial Services Group, Inc., Mr. Hinze placed an order to buy 100 shares of an exchange-traded fund (ETF) for $11,175. Seven days later, Mr. Hinze placed orders to buy 260 shares of two other ETFs and 210 shares of another ETF, for a total of $40,482. The customer had not authorized any of the transactions and quickly complained to the member firm, who cancelled the trades and terminated Mr. Hinze’s employment.
Without admitting or denying FINRA’s findings, Mr. Hinze was suspended from association with any FINRA member in any capacity for one month and ordered to pay a $5,000 fine.
FINRA rules require brokerage firms to establish and implement a reasonable supervisory system to protect customers from the risks associated with investing. The implementation of the rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for investment losses which stem from their employees’ misconduct. Therefore, investors who have suffered losses due to a brokerage firm’s failure to supervise the unsuitable recommendations of its representatives can bring forth claims to recover damages against firms, like Oak Ridge Financial Services Group, which have a duty to supervise employees in order to protect their customers’ interests.
Have you suffered losses in your Oak Ridge Financial Services Group account due to unauthorized trading in your account? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Oak Ridge Financial Services Group stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.