FINRA Bars Alpine Securities Over Allegations Over Misappropriation and Excessive Fees

Posted on March 31st, 2022 at 1:30 PM
FINRA Bars Alpine Securities Over Allegations Over Misappropriation and Excessive Fees

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has barred a Salt Lake City-based advisory firm, Alpine Securities, from the industry and has ordered the firm to pay nearly $2.3 million in restitution.


FINRA alleged that Alpine misappropriated client funds, charged excessive fees, and completed several unauthorized trades. According to FINRA’s complaint, Alpine Securities began to face financial challenges in 2018 when the firm was defending itself against a Securities and Exchange Commission (SEC) suit alleging that it had violated securities laws. Alpine allegedly informed clients that the firm was forced to retract its retail business and would issue a $5,000 monthly account fee on clients who fail to close their accounts.


According to FINRA, Alpine failed to provide its clients with sufficient notice while clients struggled to receive answers to their questions as the firm completed staffing cuts. The FINRA hearing panel determined that the $5,000 monthly account fee was unreasonable while estimating that Alpine clients lost at least $2 million.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, finra, sec

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