Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on November 28, 2016 indicate that Florida-based brokerage and advisory firm 1st Discount Brokerage recently settled allegations of misconduct. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding 1st Discount Brokerage (CRD# 39164).
Formed in Florida in 1995, 1st Discount Brokerage is headquartered in Lake Worth, Florida and registered with 52 US states and territories. William Harold Corley Jr. is President; Nicky Cheng is Chief Compliance Officer; Joel De Young is Municipal Principal.
According to the firm’s BrokerCheck report, 1st Discount Brokerage has received eight regulatory sanctions and three customer complaints that evolved into arbitration.
In November 2016 FINRA sanctioned 1st Discount Brokerage following allegations the firm “failed to establish, maintain and enforce a reasonably-designed supervisory system and [written supervisory procedures] regarding the sales of leveraged, inverse, and inverse-leveraged exchange-traded funds (non-traditional ETFs).” The firm allegedly permitted its representatives to recommend that customers invest in non-traditional ETFs “without performing reasonable due diligence to understand the risks and features associated with them.” Certain of the customers in question, allegedly, had conservative investment objectives, and some were elderly. For reference, non-traditional exchange-traded funds are complex products that come with many risks, and may not be suitable for all investors. 1st Discount Brokerage was censured and issued a fine of $50,000; it was also ordered to pay restitution exceeding $39,000.
If you or someone you know has lost money investing with 1st Discount Brokerage, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.