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Great American Investors: Regulatory Sanctions Allege Supervisory Failures

Great American InvestorsPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on August 31, 2018 indicate that Kansas-based brokerage firm Great American Investors has received several regulatory sanctions. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Great American Investors (CRD# 28489).

Established in Kansas in 1991, Great American Investors is headquartered in Overland Park, Kasas and registered with 22 US states and territories: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, New Jersey, New York, Oklahoma, Tennessee, Texas, and Virginia. It is registered with two self-regulatory organizations (SROs): FINRA and the Securities and Exchange Commission.

According to the firm’s BrokerCheck report, Great American Investors has received three regulatory events.

In 2013 FINRA sanctioned the firm in connection to allegations it supervisory system was inadequately designed to achieve compliance with relevant securities laws and rules. FINRA’s findings alleged that the firm failed to adequately review “all documentation or account activity statements relating to its registered representatives, who were also registered investment advisors with a non-affiliated investment advisory firm,” such that it could supervise their activities as private securities transactions. FINRA’s findings stated that the firm “did not adequately review all of the electronic correspondence” of its representatives in contravention of its own procedures, and additionally that it failed to conduct adequate branch offices and Office of Supervisory Jurisdiction, per its own procedures. FINRA also stated that the firm failed to adequately supervise all of its registered representatives’ outside brokerage accounts, and that though it was made aware of these accounts, it did not receive duplicate statements for or “actually supervise” them. The firm was censured and issued a fine of $15,000.

In 2006 the National Association of Securities Dealers sanctioned the firm in connection to allegations that acting through an employee, it failed to properly supervise a registered representative who executed excessive transactions in the account of a public client “when the firm knew or should have known that these transactions were unsuitable” for that client. The firm was issued a fine of $12,500.

In 1998 the National Association of Securities Dealers sanctioned the firm in connection to allegations it failed to “conduct needs analysis, develop a written plan and provide continuing education” to its registered representatives. The firm was censured and issued a fine of $2,500.

If you or someone you know has lost money investing with Great American Investors, 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.