Broker-dealers are browbeating clients to settle arbitration cases by inundating them with requests for discovery information, according to a top state securities regulator
Another independent broker-dealer has bitten the dust, this time apparently because of some private placement deals that went bust.
Last month, the Financial Industry Regulatory Authority Inc. shut down APS Financial Corp. for overcharging clients $1.3 million for bond trades in 2005 and 2006.
A dually registered investment adviser and broker defended his investment strategy after being charged today by the Securities and Exchange Commission with switching clients in and out of related funds without telling them the changes would boost his commission.
Finra has shuttered a small Texas broker-dealer for allegedly charging clients excessive markups on $1.3 million in securities transactions.
Finra arbitrators have ordered a securities analyst who claims he was wrongfully fired by Rodman & Renshaw LLC in 2006 for attempting to lower a stock rating to pay the broker-dealer $10.7 million in damages.
Raymond James Financial Services Inc. early this month fired a broker who held key financial positions in local Connecticut politics after discovering he was under investigation for misappropriating clients' funds.
For the third time this summer, securities industry arbitrators have ordered brokerage units of Raymond James Financial Inc. to return money to clients who brought claims over frozen auction rate securities.
