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H. Beck Sanctioned for Failing to Supervise Brokers

According to records provided by the Financial Industry Regulatory Authority, Maryland-based brokerage and advisory firm H. Beck has signed a letter of Acceptance, Waiver, and Consent (AWC letter) in connection to allegations it failed to enforce written supervisory procedures. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding H. Beck (CRD# 1763).

Formed in 1984, H. Beck is headquartered in Bethesda, Maryland and registered in 52 US states and territories. James Dresselaers is President; Scott Thorson is Executive Vice President and Chief Operating Officer; Benjamin Cooper is Senior Vice President and Chief Legal Officer; Raymond Hessling is Chief Compliance Officer. H. Beck is a subsidiary of the Securian Financial Group.

shutterstock_112959457In October 2015, FINRA sanctioned H. Beck following allegations the firm failed to enforce its “written supervisory procedures regarding on-going due diligence. Specifically, H. Beck failed to conduct adequate on-going due diligence and address red flags in relation to three offerings from one issuer.”

According to FINRA’s complaint, H. Beck failed to conduct sufficient due diligence with respect to three private placement funds between May 2008 and January 2009, in violation of its own procedures as well as FINRA rules. Allegedly, H. Beck received an email in May 2008 containing audited financial statements demonstrating “a deterioration of in the financial condition” of the funds in question. The firm allegedly failed to detect said deterioration. This conduct constitutes a violation of FINRA Rule 2010 and NASD Rules 3010 and 2110. In response to FINRA’s complaint, H. Beck has signed an AWC letter agreeing to a censure and a fine of $40,000.

If you or someone you know has a complaint regarding H. Beck, a subsidiary of the Securian Financial Group, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recover lost funds. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you do. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.