Citizens Securities to Pay a Former Broker Nearly $1.7M for Recruitment Misrepresentations

Posted on July 27th, 2017 at 2:37 PM
Citizens Securities to Pay a Former Broker Nearly $1.7M for Recruitment Misrepresentations

From the Desk of Jim Eccleston at Eccleston Law LLC:

A FINRA arbitration panel has ordered Citizens Securities to pay a former broker nearly $1.7 million for misrepresenting to him that he would receive a $30 million book of business when he was recruited by the firm. Instead, the former broker received a book of business a third of that size.

In addition, according to the complaint, the former broker was told by a recruiter of Citizens Securities that he could continue to work in State College, Pennsylvania where his clients were based but he instead was assigned to branches far from that location.

In its decision, the FINRA arbitration panel awarded the former broker $1.5 million in compensatory damages, plus nearly $169,000 in interest and $8,000 in sanctions.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Broker, Citizens

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

August 8, 2022
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

August 5, 2022
SEC Fines RIA $5.8 Million Over 12b-1 Fee Infractions Tied to Wrap Accounts

The Securities and Exchange Commission (SEC) has imposed a $5.8 million fine against Private Advisor Group over 12b-1 fee violations tied to its wrap fee program. 

August 4, 2022
North Dakota Regulators Seek to Close Down Advisory Firm Selling Crypto and Weed Products

The North Dakota Securities Commissioner’s office is seeking to shut down a small West Fargo-based registered investment adviser (RIA) after its owner allegedly violated state securities laws and improperly took custody of $17.8 million in client funds beginning in 2017.