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.
Contact Soreide Law Group for a Free Review of Your Potential Investment Loss Claim If your financial advisor recommended Creative Media & Community Trust (NASDAQ: CMCT) and you suffered substantial losses, you may have legal rights. A CMCT investment loss attorney can help you understand your options and pursue recovery. Many investors purchased CMCT believing […]
Soreide Law Group is investigating potential investor claims involving Cambridge Investment Research following a FINRA disciplinary action concerning Unit Investment Trust (UIT) recommendations. In April 2026, FINRA censured Cambridge Investment Research after finding supervisory deficiencies involving certain UIT recommendations made to retail clients. Investors who incurred excessive fees, unnecessary costs, or other damages associated with […]
Soreide Law Group is investigating potential investor claims involving Infinity Financial Services after FINRA sanctioned the firm for supervisory failures involving deferred variable annuity exchanges and recommendations. Investors who incurred surrender charges or other losses in connection with variable annuity transactions recommended through Infinity should review the allegations that led to FINRA's disciplinary action against […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com