The Financial Industry Regulatory Authority (“FINRA”) obtained a Cease and Desist Order against Alpine Securities Corporation in a proceeding dated August 5, 2019. Specifically, FINRA Ordered Alpine to cease and desist converting clients’ securities and funds, misusing their funds and making unauthorized transactions in their accounts, among other actions which demonstrate violations of FINRA Rules or securities laws. The Order, which threatens Alpine’s expulsion if violated, comes just weeks after FINRA filed a Complaint against the brokerage firm. Here’s more on the Order:

Alpine Securities Corporation Agrees To “Cease And Desist” Violating FINRA Rules On Converting And Misusing Client Funds

It appears that Alpine Securities Corporation may have violated securities laws. First of all, Alpine seemingly charged clients $5,000 a month as an “account fee” – a staggering increase over the $100 fee that clients had been paying. Apparently, the securities firm even debited the clients’ accounts in order to get its fees.

FINRA ordered Alpine Securities Corporation to refund the fees earmarked for the securities firm’s suspicious purposes. Also, the Order required Alpine to “restore” the client’s assets that it purportedly journaled or sold without authorization. Allegedly, out of nowhere, Alpine decided that clients’ investments were of no value. On this basis, Alpine allegedly moved the purportedly worthless securities to its accounts, claiming clients abandoned their investments. As a result, the Order also instructed Alpine to restore clients’ “abandoned” securities.

FINRA Orders Brokerage Firm To Stop Charging Excessive Fees

Further, FINRA suggested that Alpine charged clients excessive fees. Supposedly, the securities firm charged clients a $1,500.00 “re-certification” fee, which allegedly exceeded the maximum charge allowed. Also, it appears that Alpine charged clients unreasonable volatility and illiquidity fees. In fact, the Order demanded that Alpine Securities account for its monthly fees and the securities or funds it potentially took without authorization and without any legitimate purpose.

Complaint Alleges Firm Converted, Misused Client Assets

FINRA already filed a Complaint against Alpine Securities Corporation on July 25, 2019. The Complaint alleges conversion, misuse of client assets, unauthorized trading, unfair prices and commissions, unreasonable and discriminatory fees, and unauthorized capital withdrawals.

Mainly, the Complaint alleged that Alpine Securities Corporation used its fee increase to convert clients securities. Also, Alpine supposedly told its clients that it would sell or transfer their securities to Alpine’s proprietary accounts. Supposedly, the securities firm converted “millions of shares” of client’s securities.

Alpine Securities Corporation Allegedly Determines Clients’ Assets Worthless And Abandoned

Alpine Securities Corporation supposedly told clients in May 2019 that it removed certain of their securities because they were supposedly worthless if less than $1,500.00 in market value. Subsequently, it told clients that it was going to close their accounts for good. It appears that Alpine did not tell clients in advance that it would remove securities from their accounts. Further, FINRA alleged that clients did not abandon their accounts contrary to Alpine’s opinion.

Alpine Securities Corporation Allegedly Now “Dark” And Unresponsive To Clients’ Questions About Investment Accounts

FINRA says Alpine closed and left clients without the ability to contact the securities firm. Allegedly, clients cannot speak with Alpine by phone. And Alpine allegedly failed to respond to client inquiries. Supposedly, clients do not know where their assets are or how much Alpine stole from them. Worse yet, it appears that Alpine made about $2,800,000.00 in erroneous withdrawals. Notably, the Complaint stated that Alpine essentially looted the securities firm and has placed clients at risk of “permanent” loss.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Evidently, FINRA’s Complaint against Alpine Securities Corporation is ongoing. Have you experienced losses by investing with Alpine Securities Corporation? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.