Minnesota Firm Fined and Censured by FINRA for Recommendations of Penny Stocks

Polar Investment Counsel, Inc. (CRD #42847, Thief River Falls, Minnesota)

was censured and fined $12,500, because the Written Supervisory Procedures (WSPs) of Polar Investment Counsel Inc., prohibited their registered representatives from recommending low-priced securities, such as penny stocks, to its customers.

FINRA found that because penny-stock transactions at Polar Investment Counsel were unsolicited, it did not subject them to supervisory review. The only thing Polar Investment Counsel did was have the customer sign a penny stock disclosure form.

According to FINRA, a Polar Investment Counsel representative brought penny stocks to the attention of some of his customers, which resulted in orders to buy the securities and the representative mistakenly believed that the transactions were 'unsolicited.' Polar Investment Counsel did not allow its brokers to recommend penny stock transactions and they then contacted him about the orders. Polar Investment Counsel confirmed that the representative had intended to submit the trades as unsolicited, and allowed the trades to stand which meant that Polar Investment Counsel did not subject them to adequate supervisory review.
(FINRA Case #2012033783701)

This ends the summation of information given on FINRA's website under "Disciplinary and Other Actions, June, 2014."

If you purchased high-risk penny stocks on the recommendation of your stock broker/financial advisor and experienced investment losses, please contact Soreide Law Group at (888) 760-6552 for a free consultation.