Miami Firm Fined over $1 Million for Excessive Markups and Markdowns

The Financial Industry Regulatory Authority (FINRA) has fined StateTrust Investments Inc., Miami, FL, over $1 million and firm’s broker, Jose Luis Turnes, was fined $75,000 and suspended for six months as a result of a FINRA investigation into the company exaggerating the markups and markdowns on corporate bonds and in 85 instances, the company misled and defrauded customers. From March 2007 until June 2010, StateTrust corrupted aproximately 563 corporate bond transactions, violating FINRA Rule 2010, the Standards of Commercial Honor and Principles of Trade provision.

FINRA states in the settlement that Jose Turnes charged in the range of “8 percent to over 23 percent away from the prevailing market price,” which equals about $125,000, as noted in the FINRA settlement.

StateTrust Investments Inc., from Feb. 2007 to Oct. 2012, was also fined a total of $50,000 for charges including four counts of Trade Reporting and Compliance Engine (TRADE) reporting deficiencies with two of those counts running concurrently with “related supervisory deficiencies.” A similar supervisory charge was filed in relation to Jose Turnes. For failure to properly supervise Turnes, StateTrust Chief Compliance Officer Jeffrey Cimbal was fined $20,000 and was suspended for five months.

If you feel your stock account was inappropriately marked-up or marked-down, Soreide Law Group offers a free consultation and portfolio analysis to decide if you have legal grounds to pursue a FINRA arbitration. To speak with a lawyer call (888) 760-6552.