Vanderbilt Securities: 5 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 17, 2019 indicate that New York-based brokerage firm Vanderbilt Securities has received regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Vanderbilt Securities (CRD# 5953).
Established in New York in 2001, Vanderbilt Securities is headquartered in Woodbury, New York and registered with 50 US states and territories. Organized as a limited liability company, the firm’s fiscal year ends in September. According to its BrokerCheck report, Vanderbilt Securities has received five regulatory sanctions.
In 2018 FINRA sanctioned Vanderbilt Securities in connection to allegations of supervisory failures concerning the detection and prevention of unsuitable excessive excessive trading and churning in client accounts. FINRA’s findings state that the firm’s supervisory procedures noted that frequent trading of the same security might constitute unsuitable activity, but failed to offer any guidelines for the identification and prevention of excessive trading or churning. According to FINRA, the firm did not “capture patterns of activity across multiple months” in its activity report and did not provide guidance sufficient to prevent a registered representative’s 3,500+ “transactions in a retired 93-year-old customer’s accounts, which resulted in approximately $723,000 in trading losses” while creating about $735,000 in commissions for the representative as well as the firm. FINRA’s findings state further that the representative’s supervisor, who was also the firm’s principal, observed many red flags of the representative’s misconduct, but did not reasonably respond to them. In connection with these findings, the firm was censured and issued a fine of $100,000.
In 2014 the Connecticut Banking Commissioner sanctioned Vanderbilt Securities in connection to allegations it failed to supervise the unregistered investment advisory activity, misappropriation, and fraud of a registered agent. The firm was ordered to retain a consultant to review its supervisory and compliance procedures, and to provide an “implementation plan for recommendations made by the consultant.”
In 2000 the Securities and Exchange Commission sanction the firm in connection to allegations it made misrepresentations to customers concerning over-the-counter trades. The firm was censured in connection with these findings and ordered to repay undisclosed profits.
In 1993 the National Association of Securities Dealers sanctioned the firm in connection to allegations it violated NASD rules. In connection with these findings, the firm was censured and issued a fine of $2,500.
In 1973 the National Association of Securities Dealers sanctioned the firm in connection to allegations that “a number of new account cards” were not initialed by a firm supervisor. In connection with these findings, the firm was ordered to pay a fine of $100.
If you or someone you know has lost money investing with Vanderbilt Securities, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited by law, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.