Mitchell Garrett, a former Fort Lauderdale, Florida-based broker employed by New York, New York-based Lightspeed Trading, LLC, submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he paid all of the approximately $145,142 in commissions that he received from his firm to an unregistered day-trading firm, which in turn distributed the commissions to its owners, who were not registered with a FINRA member firm. FINRA’s findings stated that Mr. Garrett did not keep any of the commissions for himself and was not an owner of the day-trading firm. An uncertain portion of the commissions Mr. Garrett paid the day-trading firm’s owners represented rent from Mr. Garrett for his use of the day-trading firm’s office and equipment. Mr. Garret was assessed a deferred fine of $10,000, suspended from association with any FINRA member in any capacity for 30 business days, and required to cooperate with FINRA in its continuing investigation of this matter.
Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of 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 their employees’ misconduct. As a result, account holders who have suffered losses stemming from a broker or registered representative’s misconduct can bring forth claims to recover damages against broker-dealers like Lightspeed Trading, which have a duty to supervise employees in order to protect their customers’ interests.
Have you suffered losses in your Lightspeed Trading 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 financial professionals for unsuitable recommendations, and/or other unauthorized and fraudulent 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 , 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.