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

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.

August 11, 2022
FINRA Suspends Former Schwab Advisor for Failing to Disclose Felony Charges

The Financial Industry Regulatory Authority (FINRA) has suspended a former Charles Schwab advisor who allegedly failed to disclose multiple felony charges.

August 10, 2022
UBS Wealth Group’s Legal Costs Skyrocket in Q2

UBS Wealth’s litigation expenses have substantially spiked in the second quarter as the firm has faced a host of investor complaints and regulatory probes into UBS’ volatile Yield Enhancement Strategy (YES).