Irvine, California-based Accelerated Capital Group, Inc. submitted a Letter of Acceptance, Waiver and Consent in which the firm consented to, but did not admit to or deny, the described sanctions and to the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that its website contained misleading information and that it violated escrow account rules and procedures. The firm’s website contained fabricated testimonials and a world map that incorrectly suggested the firm had global offices and wanted to add 250 financial advisers. However, the firm had only two offices and omitted to state that its membership agreement limited the firm to 20 associated persons. FINRA’s findings also stated that two of the firm’s representatives maintained business-related websites that contained false, misleading, exaggerated, and promissory statements. The firm’s representatives distributed power point slides to investors that were unbalanced, failed to present a sound basis for evaluating the offered investment, and violated the prohibitions against exaggerated performance predictions and unwarranted performance claims and forecasts.
FINRA’s findings also included that the firm failed to have any system or procedures applicable to the review and approval of websites, including procedures that addressed whether they would be permitted, who would be responsible for their review and approval, and how that approval would be documented.
Moreover, FINRA’s findings stated that following the firm’s participation in a contingent offering, it did not deposit investor funds in an escrow account at a bank in accordance with Securities Exchange Act of 1934 rules and the firm’s own procedures. Instead, the firm deposited investor funds into a client trust account held by an attorney. The firm was censured and fined a total of $32,500 for its violations.
FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement these protective measures, they may be a liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of stockbroker misconduct can bring forth claims to recover damages against broker-dealers like Accelerated Capital Group, which should consistently oversee its stockbrokers in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Accelerated Capital Group account due to your 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and illegal conduct.
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 , 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 firstname.lastname@example.org, 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.