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


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