Securities America has a long history of customer and regulatory complaints. Securities America is a licensed broker-dealer registered with FINRA, or the Financial Industry Regulatory Authority. Securities America has been a FINRA member since November 1981. It employs approximately 2,235 registered persons who operate from approximately 1,280 branch offices. According to FINRA, as of July 2014, Securities America has 25 customer complaints and 39 regulatory events, which includes investigations by FINRA, the SEC and state securities regulators.
Complaints against Securities America are adjudicated through FINRA, or the Financial Industry Regulatory Authority. Securities America must arbitrate all customer complaints before FINRA. Our law firm exclusively handles investor complaints before FINRA. We are currently investigating complaints against Securities America and are interested in hearing from you regarding your complaints against the firm or its stock brokers.
In March 2014, Securities America was fined $625,000 for failing to maintain an adequate supervisory system. Such systems are necessary to protect the financial health and well-being as customers and to protect against broker misconduct. In connection with this complaint, FINRA’s press release stated, “Securities America failed to supervise hundreds of brokers, some of whom were creating and sending false and inaccurate consolidated reports to customers.”
In April 2013, Securities America was censured and fined $100,000 by FINRA for complaints that it did not maintain an adequate supervisory system. Specifically, individual brokers at Securities America, according to the FINRA complaint, misrepresented the liquidity and principal protection of notes issued by Medical Capital Holdings and sold by Securities America. Securities America, according to FINRA’s complaint, should have, but failed to have adequate safeguards in place to ensure that its brokers did not misrepresent the liquidity of these investments, which ultimately cost investors millions.
In November 2011, Securities America was fined $250,000 for a complaint related to the unsuitable sale of Shale Royalties issued by Provident Royalties, LLC. The complaint alleged that Securities America failed to conduct adequate due diligence with respect to these investments, which ultimately cost investors millions.
In September 2006, the NASD fined Securities America $2.5 million and ordered the firm to pay $13.8 million in restitution to its customers who were the victims of an investment scam targeted towards Exxon retirees. The 2006 complaint against Securities America alleged that the firm failed to adequately supervise a broker who lured long-term employees of Exxon into retiring prematurely based on unreasonable and exaggerated promises of returns. The Securities America broker associated with the complaint was David McFadden, who is no longer registered.
In addition to this activity, brokers from Securities America have a long history of complaints. Over the last several years Securities America brokers have been fined, barred or suspended in connection with various FINRA rules violations. These violations range from the misappropriation of funds to sharing $300,000 in commissions with barred brokers. In addition to regulatory complaints, Securities America has battled numerous customer complaints, paying tens of millions in awards and settlements.
If you or someone you know has a complaint against Securities America, you may be able to recover your losses. Contact the stock fraud law firm Fitapelli Kurta today for a free consultation and evaluation of your complaint. Do not delay.