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.
FINRA sanctioned securities broker Jay Deron Zornes [CRD: 4124536, Ironton, Ohio], given the disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Jay Zornes worked for Cambridge Investment Research Inc. from March 5, 2014, to May 19, 2025. See below to learn more about the disclosures involving Jay Zornes. FINRA Sanctioned Zornes For Noncompliance With Investigation […]
Investors have reportedly disputed the sales practices of securities broker Patrick James Gorand [CRD: 5559541, Winnetka, Illinois], given the publicly available information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Gorand worked for J.P. Morgan Securities LLC from December 2, 2014, to the present as a securities broker and from April 26, 2023, to the […]
Investors potentially experienced sales practice violations by securities broker Christ Mavrakos (also known as Christ Mavrakakos, Chris Mavrakos, Christopher Mavrakos, and Chris Mavrokos) [CRD: 1793086, Safety Harbor, Florida], based on disclosures located on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Mavrakos worked for LPL Financial LLC from November 26, 2012, to the present, and MFP Financial […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com