Investors Capital Corp. has a history of customer and regulatory complaints. Investors Capital Corp. is a licensed broker-dealer registered with FINRA, or the Financial Industry Regulatory Authority. Investors Capital Corp. has been a FINRA member since 1992 and currently operates from approximately 342 branches nationwide.
Customer complaints against Investors Capital are governed by FINRA. As a FINRA member firm, Investors Capital is required to arbitrate all customer related complaints before FINRA. We exclusively handle FINRA complaints on behalf of investors and are investigating customer complaints against Investors Capital. We are interested in speaking to investors who may have lost money as a result of Investor Capital’s misconduct.
In June 2011, Investors Capital Corp. was censured and fined by FINRA for a variety of regulatory complaints. According to the FINRA complaint, Investors Capital Corp. failed to maintain a supervisory system regarding the sale of certain collateralized mortgage obligations. This system, according to FINRA’s complaint against Investors Capital Corporation, was necessary to protect the well-being of investors from the misconduct of brokers. These systems are also necessary to detect and rectify “red flags” that occur in customers’ accounts. They are critical to preventing customer losses and broker misconduct. In connection with this complaint, Investors Capital Corp. consented to a fine of $200,000.
In addition to FINRA’s regulatory complaint against the firm, brokers at Investors Capital Corp. have a long history of their own regulatory complaints. These complaints involve allegations of, among other things, fraud, theft and misrepresentations. By way of example, former Investor Capital Corp broker Edwin Mosquera was barred by FINRA for violations of various rules of conduct, which included excessive trading in three customers’ accounts and improperly exercising discretion in a trading account. Another Investors Capital Corp. broker, Christopher Solomon, was also barred by FINRA for misappropriating customer funds and violating other FINRA and SEC rules. Both Investors Capital Corp. brokers are permanently banned from ever associating with another FINRA broker dealer as a result of these complaints and misconduct.
In 2011, Investors Capital Corporation was ordered to pay approximately $400,000 in restitution to customers who purchased private placement interests in Provident Royalties. According to the 2011 complaint against Investors Capital Corporation, the investment in Provident Royalties was highly risky and ultimately failed – costing investors their entire principal.
Brokers at Investors Capital Corp. also have a history of customer complaints involving allegations of fraud and misrepresentations. For example, former Investors Capital Corp. broker Patricia Miller was indicted in 2014 for orchestrating a Ponzi scheme. According to the indictment, “from in or about January 2002, through May 2014, [Ms.] Miller defrauded and obtained money and property from clients by means of materially false and fraudulent pretenses, representations and promises concerning purported investments that Miller never made on behalf of the clients.” This activity occurred while Patricia Miller was a registered representative of Investors Capital Corp. According to disclosures made to FINRA by Investors Capital Corp., Ms. Miller was terminated from Investors Capital for misappropriation of funds, fraudulent investment activity, and creating false documents.
We work exclusively for investors who have lost money in firms such as Investors Capital Corp. We prosecute our cases on a contingency basis and we will not get paid unless our clients can recover money. If you or someone you know suffered losses with Investors Capital Corp. please contact us today. Our attorneys will evaluate your complaint against Investors Capital Corp. for free.