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Broker Complaints: Janney Montgomery Scott, LLC (CRD# 463)

February 6, 2014, New York. Stock fraud attorneys at Fitapelli Kurta are interested in hearing complaints from investors who have lost money with Janney Montgomery Scott or any of its brokers.

Janney Montgomery Scott is a broker-dealer firm registered as a limited liability company (LLC) in Delaware. Janney Montgomery Scott was organized in 1999 under the laws of Delaware and its main office is located at 1717 Arch Street Philadelphia, Pennsylvania 19103. Janney Montgomery Scott is registered with both the SEC and FINRA and is licensed to practice in 53 U.S. states and territories. Janney Montgomery Scott is owned by Independence Square Properties, LLC.

Janney Montgomery Scott has 40 Regulatory Events on its BrokerCheck Report and has been a party to no less than 63 arbitrations.

  • In July 2011, Janney Montgomery Scott was fined $850,000 by the SEC. According to Janney Montgomery Scott’s BrokerCheck Report, from January 2005 to July 2009 Janney Montgomery Scott failed to establish and enforce policies and procedures designed to prevent the misuse of material and nonpublic information. 
  • In May 2009, Janney Montgomery Scott was fined $200,000. According to the Letter of Acceptance, Waiver and Consent (AWC) between May 2006 and February 2008, Janney Montgomery Scott used marketing materials related to auction rate securities (ARS) that were neither fair nor balanced and that did not provide a sound basis for evaluating facts about ARS’s.
  •  In June 2007, Janney Montgomery Scott entered into a stipulation with the New York Stock Exchange Regulation Division of Enforcement stating that Janney Montgomery Scott engaged in conduct inconsistent with just and equitable principles of trade and engaged in away from market stock loan transactions.
  • In May 2005, Janney Montgomery Scott was ordered to conduct four internal audits of its Boca Raton branch and the branch manager, Terry Metzger was required to complete a continuing education program with two ears of orders. Janney Montgomery Scott was also ordered to pay over $259,000 in restitution. According to its BrokerCheck report, Janney Montgomery Scott allowed Albert Copperstone, an unlicensed sales representative to conduct securities transactions.
  • In July 2005, Janney Montgomery Scott was fined $1.2 million for permitting two clients to evade attempts by mutual fund companies to block or restrict the clients market timing transactions. Janney Montgomery Scott failed to establish and maintain a supervisory system reasonable designed to detect and prevent late mutual fund trades and failed to create records that would reflect the time of receipt for mutual fund orders.
  • In September 2004, Janney Montgomery Scott was fined $875,000 by the SEC. During 1999 and 2000 Janney Montgomery Scott received three payments for publishing research on three public companies, however Janney Montgomery Scott failed to disclose these payments on its research reports.

If you or someone you know has lost money investing with Janney Montgomery Scott you may be entitled to full recovery of your losses. The law offers investors who have fallen victim to broker misconduct a path of recovery by way of arbitration through the Financial Industry Regulatory Authority (FINRA). However, time to file a claim with FINRA is limited, so do not delay. Call the attorneys at Fitapelli Kurta today to further discuss the merits of your case. Our consultations are always free and all cases are taken on a contingency fee basis, which means if you don’t win, we don’t win.

Do not delay.

Call 877-238-4175 now to speak directly to an attorney.