Investacorp of Miami Censured and Ordered by FINRA to Pay Restitution to Clients

Soreide Law Group, based in South Florida, obtained the following information from the February 2018 Disciplinary Report: 
Investacorp, Inc. (CRD #7684, Miami, Florida)
was censured and required to provide FINRA a plan to remediate eligible clients who qualified for, but did not receive, the applicable mutual fund sales-charge waiver. As part of this settlement, the firm agrees to pay restitution to eligible clients, which is estimated to total $247,886 (the amount eligible customers were overcharged, inclusive of interest).
Without admitting or denying the findings, Investacorp consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization clients that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.
FINRA’s findings stated that these eligible clients were sold Class A shares with a front-end sales charge instead, or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged eligible clients by causing the clients to pay higher fees than they were actually required to pay.
Also, FINRA’s findings alleged that Investacorp failed to reasonably supervise the application of sales-charge waivers to eligible mutual fund sales. Investacorp relied on its financial advisors to determine the applicability of sales-charge waivers, but failed to maintain adequate written policies or procedures to assist financial advisors in making this determination. Also, the firm failed to adequately notify and train its financial advisors regarding the availability of mutual fund sales-charge waivers for eligible clients. Investacorp also failed to adopt adequate controls to detect instances in which they did not provide sales-charge waivers to eligible clients in connection with their mutual fund purchases. As a result of the firm’s failure to apply available sales-charge waivers, Investacorp estimates that eligible clients were overcharged by approximately $215,092 for mutual fund purchases made since July 1, 2009.
(FINRA Case #2015047977401)
If you experienced losses through the actions or recommendations of Investacorp in Miami, call Soreide Law Group, conveniently located in South Florida, and speak to a securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA. We operate on a contingency fee basis—no fee if no recovery.