September 10, 2014

Minnesota Firm Fined $1 Million by FINRA for Failing to Supervise Penny-Stock Sales

On September 2, 2014, the Financial Industry Regulatory Authority (FINRA), fined Feltl & Company of Minneapolis $1 million for failing to properly supervise its penny-stock business between 2008 - 2012. FINRA reports that Feltl & Company failed to inform their clients ahead of certain penny-stock transactions about the suitability and risks. Also FINRA claims they did not send customers account statements showing the market value of each penny stock or keep proper records of transactions.

Penny stocks trade below $5 a share and are risky investments because it is difficult to track such companies' business potential and future value. FINRA has warned firms repeatedly to review their procedures.

According to FINRA, Feltl earned $2.1 million from at least 2,450 solicited customer transactions in 15 penny stocks during the four years in question. It is not known how much Feltl made from selling penny stocks between 2008-2012 that they did not keep track of, however, according to FINRA it was "substantial."

Feltl, employs aproximately 113 brokers and has eight branches in Minnesota and Illinois. They have had four regulatory problems with FINRA before this last problem with penny stock.

If you or a loved one purchased high-risk penny stocks on the recommendation of your stock broker/financial advisor and experienced financial losses, please contact Soreide Law Group at (888) 760-6552 for a free consultation. We represent clients nationwide before FINRA.

Recent Posts

March 28, 2024
KAREN CHUNG of WESTERN INTERNATIONAL

Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s  BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms.  She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

March 18, 2024
JAYSON R POCIUS Barred by FINRA

JAYSON R POCIUS, a former broker with Wells Fargo Advisors Financial Network, LLC of Arlington Heights, IL, who was registered with Wells Fargo from 2019 through June of 2023, was barred from the securities industry by FINRA on March 8, 2024, after he failed to cooperate with an investigation by the Financial Industry Regulatory Authority […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram