Atlanta firm alerts authorities about big loss on 'unauthorized' trades

Atlanta firm alerts authorities about big loss on 'unauthorized' trades
IFS Securities says it fired the senior executive responsible for the money-losing transactions.
AUG 15, 2019
By  Bloomberg

IFS Securities, an Atlanta-based broker-dealer, said it suffered "substantial losses" because of what it called unauthorized transactions made by one of its highest-ranking employees, prompting the company to alert federal regulators. The firm said in a statement to Bloomberg News that it fired the banker, whom it didn't name but described as "one of IFS Securities' most trusted senior employees." The firm said it also alerted the Securities and Exchange Commission, the Financial Industry Regulatory Authority Inc. and the Federal Bureau of Investigation, and is cooperating with those agencies. [Recommended video: Deploying fintech to improve the client experience and prevent fraud]​ IFS didn't disclose the nature of the money-losing trades, though it said they didn't involve customers' assets. The company said it "will be unable to make any detailed public comment concerning recent events, given the complexity of the situation and the existence of ongoing investigations that it understands have commenced." Judith Burns, a spokeswoman for the SEC, declined to comment. Messages left with spokespeople for the FBI and Finra weren't immediately returned. (More: Former IFS broker barred for fraudulent private deals)

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.