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Broker Complaints: Sanders Morris Harris, Inc. (CRD# 20580)

The securities and investment fraud law firm, Fitapelli Kurta is interested in hearing from investors who have complaints regarding Sanders Morris Harris, Inc.

Sanders Morris Harris, Inc. is a broker-dealer firm registered with both the SEC and FINRA. Sanders Morris Harris, Inc. was incorporated in Texas in 1987 and its main office is located in Houston, Texas. Sanders Morris Harris, Inc. is approved in 53 U.S. state and territories and it is owned by Pinnacle Summer Investments, Inc. Sanders Morris Harris, Inc. has 16 regulatory events on its BrokerCheck Report and has been party to four arbitrations.

In December 2014 Sanders Morris Harris, Inc. was fined $84,000 for inaccurately calculating its excess net capital. As a result of this miscalculation, the board approved an $11.6 million distribution to its owners. The correct calculation actually showed a net capital efficiency for a period of 62 days, meaning for 62 days Sanders Morris Harris, Inc. operated without having the minimum net capital required by FINRA.

In March 2014 Sanders Morris Harris, Inc. was fined $25,000 when one of its brokers in Mississippi recommended that a 90 year old client purchase a promissory note instead of preferred stock. The broker also allegedly unreasonably valued the investment on the clients’ accounts statement. According to its BrokerCheck report, Sanders Morris Harris, Inc. failed to reasonably supervise this brokers and prevent the sale of such unsuitable products.

In December 2012 Sanders Morris Harris, Inc. was fined $50,000 for failing to transmit reportable order events to the order audit trail system (OATS).

In August 2012 Sanders Morris Harris, Inc. was fined $150,000 for allowing a branch officer to conduct business while the supervisors of the branch accepting the transactions was not qualified as either a Registered Options Principal or a Limited Principal-General Securities Sales Supervisor, as required by FINRA.

In July 2012 Sanders Morris Harris, Inc. was fined $75,000 for allowing one of its brokers to distribute hedge fund advertising material to retail customers that failed to disclose the risks associated with investing in hedge funds. The advertising material contained false, or misleading statements that were promissory of positive future returns and implied that negative returns could be avoided and that past performance was indicative of future positive returns.

In April 2009 Sanders Morris Harris, Inc. was fined $65,000 for failing to transmit reportable order events to OATS.

If you or someone you know has a complaint against Sanders Morris Harris, Inc. or has fallen victim to the financial misconduct of Sanders Morris Harris, Inc 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 877 – 238 – 4175 now.

As a note to investors Sanders Morris Harris, Inc. also goes by the following names: CUMMER MOYERS FINANCIAL SERVICES, CUMMER/MOYERS FINANCIAL SERVICES, KISSINGER FINANCIAL SERVICES, SANDERS MORRIS & MUNDY INC., SANDERS MORRIS HARRIS, SANDERS MORRIS HARRIS INC., SANDERS MORRIS MUNDY INC., SMH ASSET MANAGEMENT, SMH CAPITAL INC., SMH COLORADO, SMH PARTNERS