Texas securities regulator fines N.J. firm $50,000 for broker's misconduct

State claims former broker overloaded his clients with energy stocks.
MAY 24, 2016
The Texas State Securities Board ordered a New Jersey firm to pay $50,000 for allegedly failing to supervise a broker who overloaded clients' accounts with energy stocks. The Investment Center Inc., a securities dealer registered in Texas, was reprimanded and hit with the administrative fine Tuesday. The consent order follows a complaint from a Texas investor regarding the firm and one of its former brokers, according to the statement released by the TSSB. The broker was not identified. Between 2010 and 2014, certain clients at the firm held 95% of their total investible assets in equities in the energy sector, at the agent's recommendation, the order alleges. In some instances, all of those shares were in one company, despite the clients' low tolerance for risk, according to the document. Even though the agent's actions raised internal alert reports due to the concentrated equity positions in client accounts and decline in value of certain accounts, the firm failed to properly address them, said the board. During the TSSB's investigation, the firm paid the investor who filed the complaint $98,000 and the current fine will go to the general fund of the state, according to the statement.

Latest News

Ex-Texas advisor gets 11 years for Ponzi scheme, Travis Kelce among victims
Ex-Texas advisor gets 11 years for Ponzi scheme, Travis Kelce among victims

Siddharth Jawahar was sentenced 11 years in prison and $31M in restitution for running Swiftarc Capital fraud scheme

HSBC, Citi unveil new high-life and luxury offerings for affluent clients, family offices
HSBC, Citi unveil new high-life and luxury offerings for affluent clients, family offices

Wall Street banks expand wealth services as ultra-high-net-worth client demands extend further above and beyond investment management.

Cerity Partners enters Iowa with Gilbert & Cook deal
Cerity Partners enters Iowa with Gilbert & Cook deal

The acquisition of $2 billion Gilbert & Cook extends a buying spree for the ultra-high-net-worth firm that has already touched six states this year.

The financial industry has a saving problem
The financial industry has a saving problem

After years of encouraging sacrifice and delayed gratification, advisors have to do the next emotional lift: helping clients let go of a potentially harmful scarcity mindset.

Investment accounts fund nearly 7% of US household spending, JPMorgan finds
Investment accounts fund nearly 7% of US household spending, JPMorgan finds

A new JPMorganChase Institute report reveals how deeply stock market wealth now drives everyday American spending, especially for retirees.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income