Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on December 15, 2017 indicate that Florida-based brokerage firm Investacorp, a subsidiary of Ladenburg Thalmann Financial Services, has been sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Investacorp (CRD# 7684).
According to a report by Investment News, the firm was censured in connection to allegations it failed to have proper procedures in place to detect the sales of high priced mutual fund shares, by certain of its representatives, to customers who were eligible for certain discounts.
The relevant disclosure on Investacorp’s BrokerCheck report states additionally that FINRA alleged the firm “disadvantaged certain retirement plan and charitable organization customers” who could have purchased class A shares in certain funds without a front-end sales charge, but who instead were sold either Class A shares with such a charge, or Class B or C shares with back-end charges and increased fees and expenses. These sales allegedly disadvantaged the customers in question by causing them to pay more than they were in fact required, according to FINRA. FINRA’s findings also state that Investacorp failed in its duty to supervise the application of sales charge waivers for eligible sales of mutual funds. While the firm relied on its representatives to determine whether the sales charge waivers applied, it allegedly failed to put in place written policies or procedures that wold help these representatives make such determinations. For example, FINRA states, Investacorp “failed to establish and maintain written procedures to identify applicable sales charge waivers in fund prospectuses for eligible customers.” It also allegedly failed to properly notify and train its advisors with respect to the availability of waivers for certain customers, and did not adopt proper controls to detect cases in which waivers were not provided to eligible customers.
As a result of these alleged failures, FINRA’s findings state, Investacorp overcharged eligible customers roughly $215,092 in connection to mutual purchases made since July 1, 2009. Without admitting or denying the findings, Investacorp consented to a censure and to provide FINRA with a remediation plan for those customers who were eligible for sales-charge waivers but did not receive such. The firm also agreed to pay eligible customers restitution totaling roughly $247,886.
If you have lost money investing with Investacorp, a subsidiary of Ladenburg Thalmann Financial Services, you may be able to recover your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. 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.