William Galvin fines Securities America over radio ads

Failure to supervise rep's efforts to woo elderly costs firm $125,000 in Massachusetts.

Massachusetts’ securities regulator has fined Securities America $125,000 in connection with failure to supervise one of its agents whose radio advertising campaign allegedly used the dangers of Alzheimer’s disease to gain access to seniors’ brokerage business.

The complaint, which was originally filed in 2015, also alleges that Securities America approved the content of each of the radio advertisements without substantive review or follow up of any kind.

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“Securities America’s failure to adequately supervise the content of the Alzheimer’s ads created a foreseeable risk that seniors and those with loved ones suffering from Alzheimer’s might be misled into believing that a solicitation for business advertisement was some type of public service announcement,” said William Galvin, Secretary of the Commonwealth.

“While Securities America defended its action by saying that no investors complained, it’s the firm’s obligation to foresee and have reasonable measures in place to prevent the harm, not to react after the harm has occurred,” he said in a press release.

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In addition to the fine, the consent order issued by Galvin’s office censured Securities America and required the firm to permanently cease and desist conduct in violation of the law.