E.S. Financial Services, Inc. (ESF) of Miami, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly charging customers additional commission fees without their knowledge as well as keeping inaccurate books and records. ESF faced similar allegations in 2007 for allegedly failing to maintain accurate books and records.
FINRA found that ESF essentially created another source of revenue by charging its customers additional fees. Between September 1, 2011 and October 31, 2012 ESF allegedly charged its customers “a transaction fee and a custody fee in addition to a commission on fixed income transactions.” FINRA alleged that the fees were not related to services provided by ESF and therefore a violation of NASD 2430 and FINRA Conduct Rule 2010. Continue Reading