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Broker Complaints: JP Turner & Co. (CRD# 43177)

The New York based securities and investment fraud law firm, Fitapelli Kurta is interested in hearing complaints from investors who have lost money with JP Turner & Co. or any of its brokers.

JP Turner & Co. is a licensed independent broker-dealer firm approved by both the SEC and FINRA. JP Turner & Co. was formed under the laws of Georgia in 1997 and its main office is located in Atlanta, Georgia. JP Turner & Co. has offices in 52 U.S. states and territories and employs over 9,300 representatives throughout the nation. JP Turner & Co. was bought by RCS Capital Corp. in January 2014.

JP Turner & Co. has a lengthy history of FINRA violations and has been a party to 12 arbitrations with FINRA. Below are notable fines and awards entered against JP Turner & Co. or its brokers:

In December 2013, JP Turner & Co. was ordered to pay over $700,000 in restitution to customers stemming from allegations of unsuitable investment recommendations in leveraged and inverse ETFs and excessive mutual fund switching. According to a FINRA News Release, JP Turner & Co. was recommending nontraditional ETF’s without first performing due diligence to ensure its brokers even understood the product they were selling. Nontraditional ETFs are notorious for being risky and highly speculative . They are only recommended for experienced day traders, and many of JP Turner & Co.’s customer’s should never have been invested in them. In addition to these unsuitable recommendations, FINRA also noticed that JP Turner & Co. had engaged in a pattern of unsuitable mutual fund switching. Mutual funds are typically long-term investments, however during the review period, JP Turner & Co. failed to reject over 2,800 mutual fund switches, resulting in 66 customers paying over $500,000 in commissions and sales charges.

In September 2012, the SEC fined JP Turner & Co. $200,000 when several of its brokers engaged in excessive trading and churning customer’s accounts. According to JP Turner & Co.’s FINRA BrokerCheck Report, the brokers completely disregarded the investment objectives and needs of their customers and instead traded the customer’s accounts on margin, and charged over $845,000 in commissions and other fees.

In June 2009, FINRA fined JP Turner & Co. $525,000 for failing to detect multiple red flags signaling potential money-laundering within the firm. According to its’ BrokerCheck Report, in addition to failing to detect these red flags, JP Turner & Co. also failed to report customer complaints, filed multiple complaints late, and failed to maintain a record of customer complaints.

In October 2008, JP Turner & Co. was fined $250,000 for failing to supervise the commissions charged on stock trades. According to a FINRA News Release, JP Turner & Co. allowed its brokers to charge up to 4.5% in commissions on almost every stock trade between January 2002, and March 2005 regardless of the circumstances, size of the transaction, cost of executing the order, or whether the securities were readily available on the market. The FINRA investigation further revealed that according to JP Turner & Co.’s system and procedures, the representatives had the discretion to establish the commission on each transaction. The only guideline was that on all trades below $25 the brokers were allowed to charge a 4.5% commission. On trades that were above $25, the brokers were only allowed to charge 3.5% commission. It was later revealed that during the review period 91% of JP Turner & Co. equity securities transactions involved securities for below $25.

In 2006, JP Turner & Co. was fined $195,000 for failing to supervise the activities of several brokers who engaged in dishonest and/or unethical conduct. Specifically, these brokers engaged in high pressure sales tactics and used unapproved sales scripts and role playing to practice unapproved sales techniques. These brokers also conducted unauthorized transactions in customer’s accounts, overtraded customer’s accounts, made unsuitable investment recommendations, and failed to disclose multiple risks associated with certain securities. JP Turner & Co. was also ordered to prohibit the New York and Florida offices from soliciting or obtaining new accounts of New Jersey residents for two years.

If you or someone you know has a complaint against JP Turner & Co. or has fallen victim to the financial misconduct of JP Turner & Co. or any of its brokers, you may be entitled to full recovery of your losses. Call Fitapelli Kurta now for your free case consultation.   Time to file your claim is limited, so do not delay.

Call 212- 658- 1502 now.