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Broker Complaints: Securities Service Network (CRD# 13318)

Securities and investment fraud attorneys at Fitapelli Kurta are interesting in speaking to investors who have complaints regarding investments made through Securities Service Network, or its brokers.

Securities Service Network was formed in Tennessee in 1983and its main office is located at 9729 Cogdill Rd. Suite 301, Knoxville, Tennessee 37932. Securities Service Network is registered with both the SEC and FINRA and is owned by Landenburg Thalmann Financial Services.

Securities Service Network has a history of customer complaints and FINRA violations. Specifically, Securities Service Network has six disclosed regulatory events and has been a party for five arbitrations.

In August 2013 Securities Service Network was fined $25,000 for failing to establish a reasonable supervisory system relating to its brokers improper use of discretion in customer accounts. Between February 1, 2011 and May 4, 2011 a Securities Service Network broker signed 192 customer agreements which permitted the broker to sell, purchase, or exchange a definite amount of a specific security or 10 business days from the time the customer approved the transaction. Instead of following the terms of these agreements, the broker bought securities in block trades and allocated the securities to his various customer accounts. The broker did this without getting customer approval for the purchase of the “definite amount”.

In July 2013, a $22,000 award was entered against Securities Service Network stemming from a complaint alleging Securities Service Network breached its fiduciary duty, made unsuitable investment recommendations, and failed to supervise its brokers.

In February 2006, a $140,000 arbitration award was entered against Securities Service Network. According to the complaint, Securities Service Network was negligent and breached its contract with the customer.

In December 2002, Securities Service Network was fined almost $15,000 and ordered to return over $12,000 in commissions to an aggrieved customer stemming from Securities Service Network’s failure to supervise its broker, James R. Roberts in connection with the sale of a variable annuity.

In October 2001 a $347,000 arbitration award was entered against Securities Service Network. The complaint alleged Securities Service Network breached its fiduciary duty, made unsuitable investment recommendations, misrepresented material facts, and was negligent, stemming from variable annuity purchases.

In 1999 the Florida Division of Securities and Investor Protection issued an administrative complaint against Securities Service Network for operating an unregistered branch office. Securities Service Network was fined $6,500 and ordered to cease and desist business in that branch until it became registered.

In 1994, Securities Service Network was fined $10,000 for failing to supervise one of its brokers and failing to establish supervisory procedures governing the suitability of investments recommended to investors by brokers.

If you or someone you know has fallen victim to the financial misconduct of Securities Service Network or one of its brokers, you may be entitled to full recovery of your losses. Call the attorneys at Fitapelli Kurta at 212-658-1502 now for your free consultation.