John Corsi, a registered representative with Sterne Agee Financial Services, Inc. (Sterne Agee) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended and assessed a deferred fine of $20,000 by the Financial Industry Regulatory Authority (FINRA) for engaging in outside business activity and making unsuitable promissory note recommendations to his customers.
According to FINRA, John Paul Corsi, of Parma, Ohio, failed to fully disclose his involvement in an outside business activity to his member firm, failed to disclose his role in fundraising and the promissory notes issued by his outside business activity that he was allegedly recommending to firm customers for compensation. Mr. Corsi was found by FINRA to have received a fee of 5% for these promissory note recommendations, of which his customers invested a total of $1,790,041. Of those customers, three were allegedly unsuitably invested in 20% or more of their stated net worth. These customers’ investment objectives were allegedly much more conservative then the promissory notes’ significant risk profile.
Without admitting or denying FINRA’s findings, Mr. Corsi was assessed a deferred fine of $20,000 and suspended from association with any FINRA member for twenty months. The suspension is in effect from January 3, 2017 through September 2, 2018.
Stockbrokers have been known to engage in many practices that may be in violation of 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 require 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 and/or other misconduct by their broker can bring forth claims to recover damages against broker-dealers, like Sterne Agee Financial Services, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Sterne Agee Financial Services account due to unsuitable recommendations by your broker? 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 Sterne Agee Financial 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 email@example.com for answers to any of your questions about this blog post and/or any related matter.