Stifel Nicolaus and Company Sanctioned Over OTC Trading Allegations

Stifel Nicolaus & Company

Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on October 4, 2018 indicate that Missouri-based broker-dealer firm Stifel Nicolaus & Company was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints Stifel Nicolaus & Company (CRD# 793).

Established in Missouri in 1900, Stifel Niclaus & Company is headquartered in St. Louis, Missouri and registered with 53 US states and territories. According to its BrokerCheck report, it has been involved in 128 regulatory events and 48 customer complaints that evolved into arbitration.

In September 2018 FINRA sanctioned the firm in connection to allegations it “accepted and held customer orders in over-the-counter (OTC) securities… for its own account and prices that would have satisfied the customer orders, and failed to execute or immediately execute the customer orders up to the size and at the same price at which it traded for its own account or at a better price.” FINRA’s findings state additionally that as many as 45,024 of the firm’s order audit trail system (OATS) reports were inaccurate, in that they contained an “inaccurate information barrier identifier.” FINRA alleged further that the firm’s supervisory system failed to provide for supervision that was not reasonably designed to achieve compliance with relevant securities laws and regulations. The firm was censured, issued a fine of $37,500, and ordered to pay restitution to affected customers.

In April 2018 FINRA sanctioned the firm in connection to allegations a representative “entered orders in the equity shares of a security” on behalf of customer accounts which he “improperly” recorded as unsolicited orders even though they were in fact solicited, consequently causing the firm’s books and records to be inaccurate. The firm was censured and issued a fine of $25,000.

In 2016 a customer alleged Stifel Nicolaus & Company breached its fiduciary duty, committed fraud, misrepresented and omitted material facts, recommended unsuitable investments, executed unauthorized trades, violated blue sky laws, breached contract, failed in its supervisory duties, and acted negligently. The complaint resulted in an award to the customer of more than $117,300.

In 2016 a customer alleged Stifel Nicolaus & Company misrepresented and omitted material facts, made erroneous charges, and acted negligently in connection to variable annuity products. The complaint resulted in an award to the customer of $90,255.

In 2016 a customer alleged Stifel Nicolaus & Company breached its fiduciary duty, churned investments, made unsuitable investment recommendations, failed in its supervisory duties, and acted negligently. The complaint resulted in an award to the customer of $90,000.

In 2017 a customer alleged the firm breached its fiduciary duty, committed fraud, misrepresented and omitted material facts, breached contract, failed to supervise, and acted negligently in connection to investments in common stock. The complaint resulted in an award to the customer of $216,490.

If you or someone you know has a complaint regarding Stifel Nicolaus & Company, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.