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Broker Complaints: EDI Financial (CRD# 15699)

The securities and investment fraud law firm Fitapelli Kurta is investigating allegations of misconduct against Texas-based brokerage firm EDI Financial (CRD# 15699).

Formed in Texas in 1984, EDI Financial is headquartered in Irving, Texas and registered with 50 US states and territories. Martin Prinz is President, Director, and Chief Compliance Officer; Varkey John is Financial Operations Principal.

According to the firm’s BrokerCheck report, EDI Financial is the subject of nine regulatory sanctions and three customer complaints that evolved into arbitration.

In 2015 the Financial Industry Regulatory Authority (FINRA) sanctioned EDI Financial following allegations the firm failed to adopt and implement adequate supervisory procedures related to the sale of private placements, ultimately resulting in a failure to determine whether sufficient due diligence was being performed on private placements. EDI Financial was censured and issued a fine of $100,000.

In 2014 a customer alleged EDI Financial misrepresented material facts related to an investment, churned an account, executed unauthorized trades, acted negligently, failed to supervise, and made unsuitable recommendations in common stock and exchange-traded funds. The complaint resulted in an award to the customer of more than $273,600.

In 2010 FINRA sanctioned EDI Financial following allegations, among others, the firm failed to timely deposit customer checks into escrow. The firm was censured and issued a fine of $10,000.

In 2008 the State of Texas sanctioned EDI Financial following allegations that an agent of the firm was not directly supervised by an EDI principal, in violation of a prior undertaking. The firm was issued a fine of $17,500.

In 2004 a customer alleged EDI Financial breached its fiduciary duty, misrepresented material facts, failed to supervise, and recommended unsuitable investments in common stock, options, and annuities. The complaint resulted in an award to the customer of more than $71,900.

In 1986 a customer alleged EDI Financial breached contract. The complaint resulted in an award to the customer of $10,125.

If you have complaints regarding or have lost money investing with alleged EDI Financial, 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. Fitapelli Kurta takes every case on a contingency basis, which means Fitapelli Kurta only gets paid if and when you collect money. By law there may be 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.