FINRA Fines Triad Advisors and Securities America for Consolidated Reporting Violations

Posted on April 14th, 2014 at 11:50 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Triad Advisors and Securities America were fined by FINRA for failing to supervise the use of consolidated reporting systems. This caused statements to be issued to customers with inaccurate valuations. The firm also failed to retain the consolidated reports in accordance with securities laws.

Triad Advisors and Securities America both had a consolidated report system that permitted their representatives to create consolidated reports, that feature allowed them to enter customized asset values for accounts held away from the firm and to provide the reports to customers. However, for the past two years, Triad and Securities America failed to supervise hundreds of their brokers who create and sent false and inaccurate consolidated reports to customers.

Many of these consolidated reports contained inflated values for investments, some of which were in default or receivership. Moreover, at Triad, a number of consolidated reports sent to customers reflected fictitious promissory notes or other fictitious assets, which enabled two representatives to conceal their misconduct. Triad has paid restitution to some of the affected customers and FINRA has ordered Triad to pay restitution to the remaining affected customers.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

October 2, 2024
SEC Charges Two South Florida Men for Defrauding Venezuelan-American Investors in $5 Million Scheme

The Securities and Exchange Commission (SEC) has filed a complaint against two South Florida men, Francisco Javier Malave Hernandez and Ricardo Javier Guerra Farias, for orchestrating a multi-million dollar investment fraud that targeted members of the Venezuelan-American community.

October 1, 2024
California Advisor Suspended and Fined for Churning Client Accounts

A veteran advisor in Santa Maria, California, Stewart "Paxton" Ginn, has been suspended for 18 months and fined $50,000 by FINRA, according to AdvisorHub

September 30, 2024
Bank of America and Merrill Lynch Settle with FINRA for Supervisory Failures

Bank of America and its subsidiary, Merrill Lynch, have agreed to a $3 million fine and censure as part of a settlement with FINRA over long-term supervisory failures.