Costa Mesa, California-based Accelerated Capital Group (Accelerated Capital) was named in a Financial Industry Regulatory Authority (FINRA) complaint alleging that the firm failed to establish and maintain a proper supervisory system to detect unsuitable, excessive, or unauthorized trading in customers’ accounts. FINRA’s complaint goes on to make numerous allegations regarding failures in the firm’s supervisory system.
According to the FINRA complaint, Accelerated Capital Group failed to properly monitor, through its supervisory system and written supervisory procedures (WSPs), mutual fund switches, exchanges, and sales for suitability, and failed to appropriately identify or respond to red flags of broker misconduct. The complaint also alleges that the firm’s supervisory procedures failed to ensure that customers understood the differences in fees among mutual fund products. Further, FINRA’s complaint alleges that due to the inadequate supervisory systems, a registered representative was able to churn his customers’ accounts, allegedly resulting in customers sustaining more than $900,000 in trading losses and improper sales loads.
Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of fraudulent and unlawful behavior which are in violation of industry rules and procedures. In order to protect customers from broker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor its 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 losses flowing from the employees’ misconduct. As a result, account holders who have suffered losses stemming from a broker’s unsuitable recommendations, excessive or unauthorized trading, and/or fraudulent misconduct can bring forth claims to recover damages against broker-dealers like Accelerated Capital Group, which have a duty to supervise its employees in order to prevent these types of misconduct.
Have you suffered losses in your Accelerated Capital Group investment account due to your registered representative or stockbroker’s misconduct? 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 Accelerated Capital Group financial professionals for unsuitable recommendations, excessive trading, and other types of stockbroker misconduct.
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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.