Feltl & Co., based in Minneapolis, paid a $1 million fine for alleged supervisory failures, among other things, while overseeing penny stock, and it has now replaced several executives, including it's general counsel, chief compliance officer, head trader, and a branch manager.
FINRA reported that Feltl also failed to comply with customer-suitability, disclosure, and record-keeping requirements. Feltl did not provide risk-disclosure documents to customers before trading penny stocks, which are considered to be high risk and speculative.
According to FINRA, Feltl solicited their clients to make at least 2,450 purchases of 17 penny stocks and received $2.1 million from the transactions. FINRA said it was unable to gauge the total number of trades because of their incomplete records.
If you've purchased high-risk penny stocks at the recommendation of your stock broker/financial advisor, please contact Soreide Law Group at (888) 760-6552 for a free consultation on how to potentially recover your losses. We represent clients nationwide before FINRA.
Moors & Cabot, Inc. (CRD 594) is a brokerage firm based in Boston, Massachusetts. FINRA censured and fined the firm $125,000 after finding it failed to develop and implement an anti-money laundering compliance program reasonably expected to detect and report suspicious transactions, according to an AWC issued August 24, 2026.
Cowen and Company, LLC (CRD 7616), now part of TD Securities (USA) LLC, is a brokerage firm based in New York, New York. FINRA censured and fined the firm a total of $80,000, of which $40,000 is payable to FINRA, according to an AWC issued August 19, 2026.
Webull Financial LLC (CRD 289063) is a brokerage firm based in New York, New York. FINRA censured and fined the firm $115,000 after finding it maintained inaccurate books and records of options order origin codes, according to an AWC issued August 17, 2026.
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