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Woodbury Financial Services Fined 100k for UITs

According to records provided by the Financial Industry Regulatory Authority (FINRA), Minnesota-based brokerage and advisory firm Woodbury Financial Services has signed a letter of Acceptance, Waiver, and Consent (AWC letter) alleging violations of misconduct. The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding Woodbury Financial Services (CRD# 421).

FINRA’s allegations (AWC No. 2014041842001) state that Woodbury Financial Services “failed to apply sales charge discounts to certain customers’ eligible purchase of unit investment trusts (UITs). The firm additionally allegedly failed to establish and enforce supervisory procedures to ensure that customers receive relevant discounts.

shutterstock_140770462A unit investment trust is an investment entity that issues securities representing undivided interests in a fixed portfolio of securities. UITs are typically gathered by a sponsor into a portfolio, placed into a trust, and sold in a public offering. They are redeemable securities issued for a specified term, and investors are entitled to receive a proportionate share of the UIT’s net assets on redemption or at termination. Sponsors generally offer several possible discounts, including breakpoints, which let investors reduce fees by increasing the size of their investments, as well as discounts on rollovers and exchanges.

During the relevant period in FINRA’s complaint, Woodbury Financial Services “failed to apply sales charge discounts to approximately 744 eligible UIT purchases resulting in customers paying excessive sales charges of approximately $98,937.31.” It has already paid restitution to all the customers in question. The firm has consented to a censure and a fine of $100,000.

If you have lost money investing with Woodbury Financial Services and/or in Unit Investment Trusts, you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency, which means we only get paid if and when you collect money. You may have a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.