Christopher Michael Herrmann of Greenwood, Indiana submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was assessed a deferred fine of $10,000 and suspended.
From September 2011 to May 2015, Herrmann was employed with Key Investment Services (KIS) as a General Securities Representative. According to FINRA, in September 2013 and October 2014, Mr. Herrmann recommended annuity transactions to retired and elderly customers. The findings stated that Mr. Herrmann failed to facilitate the transactions as a tax-free 1035 exchange, resulting in significant tax liability to the customers. Mr. Herrmann allegedly circumvented KIS’s compliance procedures and supervision by concealing these switch transactions and providing false information. Based upon the foregoing, FINRA concluded that Christopher Herrmann violated FINRA Rules 4511, 2111 and 2010.
Without admitting or denying FINRA’s findings, Christopher Herrmann consented to the sanctions and has been suspended from association with any FINRA member in all capacities for nine months. The suspension is in effect from November 5, 2018, through August 4, 2019.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, misrepresentations and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Key Investment Services, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Key Investment Services account due to unsuitable recommendations and/or misrepresentations by your broker? Was Christopher Michael Herrmann your stockbroker? 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 Key Investment Services stockbrokers who may have engaged in broker 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 40 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.