Brokerage Feltl Gets FINRA Sanction

Feltl & CompanyPublicly available records published by the Financial Industry Regulatory Authority (FINRA) on May 23, 2016 indicate that Minnesota-based brokerage firm Feltl & Company has been sanctioned by FINRA for allegedly charging excessive sales fees. The securities and investment fraud law firm Fitapelli Kurta is interested in speaking to investors who have complaints regarding Feltl & Company (CRD# 6905).

Formed in Minnesota in 1975, Feltl & Company is headquartered in Minneapolis, Minnesota and registered with 51 US states and territories. John Feltl is Chief Executive Officer; Mitchell Edwards is Chief Operations Officer; Mary Feltl is President; Michael Schierman is Chief Financial Officer; and Dirk Van Krevelen is Chief Compliance Officer.

According to the firm’s BrokerCheck report, Feltl & Company has been the subject of 10 regulatory sanctions and one customer complaint that evolved into arbitration.

In May 2016, FINRA sanctioned Feltl & Company following allegations that the firm failed to identify and apply sales-charge discounts to eligible purchases of unit investment trusts, causing certain customers to pay excessive sales charges totaling approximately $261,873. FINRA also found that Feltl & Company failed to establish, maintain, and enforce adequate supervisory procedures designed to prevent such activities and ensure that customers received sales charge discounts on applicable UIT purchases. According to FINRA, Feltl & Company “employed a decentralized system for its supervisory review of UIT transactions that relied on branch managers to detect potentially problematic transactions or patterns of transactions through daily reviews of trade blotters.” Feltl & Company also allegedly “allowed unsuitable UIT trading to go undetected.” The firm was censured and issued a fine of $250,000.

In December 2015, FINRA sanctioned Feltl & Company following allegations that the firm failed to execute orders fully and promptly, and additionally failed to use adequate due diligence to “ascertain the best inter-dealer market and buy or sell in such market so that the resultant price to its customer was as favorable as possible under prevailing market conditions.” The firm was censured and issued a fine of $12,500.

In November 2015, FINRA sanctioned Feltl & Company following allegations that the firm “did not establish reasonable procedures regarding how daily trading was to be monitored, and, if any suspicious trading was identified, what actions compliance should take.” The firm was censured and issued a fine of $50,000.

If you have lost money investing with Feltl & Company, 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. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim might be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.