Capitol Securities Management, Inc. (CSM) of Glen Allen, Virginia submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority (FINRA) for several claims of supervisory failures and unsuitable purchases of Reverse Convertible Notes (RCN’s). CSM has been a FINRA member since 1985 and has over 60 branch offices with its main headquarters in Glen Allen, Virginia. According to FINRA, a registered representative for CSM recommended and executed 24 unsuitable purchases of customizable RCN’s totaling approximately $4 million. FINRA claimed that the eight clients affected were unsuitable candidates for these RCN purchases because of their risk tolerance, age, and financial experience. In addition, FINRA found that CSM failed to implement a proper Anti-money Laundering (AML) and Customer Identification Program (CIP). FINRA also found red flags in seven of their clients’ accounts and that CSM did not verify the identification for seven accounts. In over 400 transactions, FINRA also found, that the CSM representative was collecting excessive commissions totaling approximately $32,784.13. CSM agreed to the FINRA sanctions, without admitting or denying the FINRA findings, and was ordered to pay a $470,000 fine. Additionally, CSM was ordered to pay restitution in the amount of $226,448.90 for the clients affected by their representative.
Do You Need an Attorney for a Failure to Supervise Matter?
Virginia has hundreds of stock brokerage firms and investment advisory offices. With so many stock brokerage firms comes the potential for a stock brokerage firm to fail to supervise its stockbrokers, financial advisors and investment advisors from engaging in misconduct which violates Federal and Virginia securities laws and Financial Industry Regulatory Authority (FINRA) rules and the stock brokerage firm’s policies and procedures.
Experienced Lawyers Who Handle Failure to Supervise Stockbroker Claims In FINRA Arbitrations Throughout Virginia and Nationwide.
Are you a Virginia investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Virginia stockbrokerage or investment advisory firm where you do business fail to supervise the stockbroker who recommended bad investments and otherwise mismanage your investment account? If so, you will need to hire an experienced, highly-rated and nationally recognized FINRA securities arbitration lawyer— an attorney who knows how to handle these failure to supervise cases as well as other complex legal issues.
By hiring a top rated attorney like Robert Wayne Pearce with over 40 years of experience with failure to supervise claims by practicing securities law on both sides of the table in FINRA arbitration proceedings, you will clearly see that Attorney Pearce doesn’t just handle cases—he aggressively represents investors and is one of the best lawyers to recover your investment losses due to a stockbrokerage or investment advisory firm’s failure to supervises its registered representatives in FINRA arbitration proceedings!
At The Law Offices of Robert Wayne Pearce, P.A., we represent investors with failure to supervise claims and all kinds of securities law and investment disputes in FINRA arbitration and mediation proceedings. We handle a wide range of practice areassuch asfraud and misrepresentation, breach of fiduciary duty, churning, theft, forgery, margin account abuse and unsuitable recommendations to purchase, sell or hold securities or recommend unsuitable investments strategies. Attorney Pearce and his staff represent investors throughout Virginia, and across the United States on a CONTINGENCY FEE basis, which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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Free Initial Consultation With An Attorney Experienced In Failure to Supervise Stockbroker Disputes Serving Virginia Residents In FINRA Arbitrations
The Law Offices of Robert Wayne Pearce, P.A. are highly experienced lawyers who successfully handle failure to supervise claims and other securities law matters and investment disputes in Virginia, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by an attorney with over 40 years of experience and success in failure to supervise and all kinds of securities law and investment disputes serving Virginia citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.