FSC Securities Has Been Sanctioned For Failing to Establish an Adequate Supervisory System

FSC Securities Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on June 16, 2017 indicate that Georgia-based brokerage and investment adviser firm FSC Securities has been sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding FSC Securities (CRD# 7461).

Established in Delaware in 1977, FSC Securities Corporation is headquartered in Atlanta, Georgia and registered with 52 US states and territories. John Dillon is Vice President and Chief Financial Officer; Robert Guldner is Chief Compliance Officer, Investment Advisory; Jerome Murphy is Chief Executive Officer and President; Thomas Sidlo is Municipal Principal; Noah Sorkin is Executive Vice President, General Counsel, and Secretary; James Price is Chairman; Cynthia Hamel is Chief Operations Officer; David Schmidt is Treasurer and Financial Operations Principal. The firm is registered with the Securities and Exchange Commission and FINRA.

According to the firm’s BrokerCheck report, FSC Securities was recently sanctioned by FINRA.

In April 2017 FINRA sanctioned the firm following allegations it “failed to establish, maintain and enforce a supervisory system that was reasonably designed to review and monitor third-party check requests from customer accounts.” A letter of Acceptance, Waiver and Consent (No. 2012034037602) signed by the firm and submitted to FINRA states further that during the relevant period, “JZ,” a registered representative sold memberships in PFG LLC, an investment fund created by “AP,” a former FSC representative, and submitted letters of authorization signed by 15 customers to the firm, “which authorized in aggregate approximately $1.6 million to be transferred from their FSC brokerage accounts to a bank account controlled by the PFG fund.” That letter states additionally: “The PFG fund was not an approved product for sale by FSC representatives and FSC did not therefore supervise JZ’s sales of the PFG fund memberships… The PFG fund ultimately lost millions of dollars through speculative trading and other investments. To cover up the losses, AP created false account statements that fraudulently reflected fictitious assets and investment returns. AP made these false account statements available to the pFG fund investors through its website. The PFG fund collapsed in June 2012 when AP disappeared and was presumed dead. The FSC customers who invested in the PFG fund suffered significant losses.” FSC Securities was censured and issued a fine of $200,000.

If you or someone you know has lost money investing with FSC Securities, call 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.