Vestech Securities: 4 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 20, 2019 indicate that Missouri-based brokerage and advisory firm Vestech Securities has received regulatory sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Vestech Securities (CRD# 41409).
Established in Kansas in 1996, Vestech Securities is headquartered in St. Louis, Missouri and registered with 33 US states and territories. Organized as a corporation, the firm’s fiscal year ends in June. According to its BrokerCheck report, Vestech Securities has received four regulatory sanctions.
In 2017 the State of Kansas sanctioned the firm in connection to allegations it failed to reasonably supervise an investment adviser in such a manner that would stop various violations, such as “misuse of funds, misrepresentations of qualifications and services,” failures to make certain disclosures, and “improper deductions” from a fund under his management. The firm was issued a fine of $10,000.
In 2014 FINRA sanctioned the firm in connection to allegations i fell below its net capital requirements and had inadequate financial and accounting controls. In connection with these findings, the firm was censured and issued a fine of $15,000.
In 2014 FINRA sanctioned the firm in connection to allegations of net capital deficiencies resulting from inadequate financial and accounting controls. FINRA’s findings state that the firm’s chief compliance officer was “primarily responsible” for the deficiencies. They also state that the firm completed securities business “while operating under its net capital requirement,” and that it lacked adequate processes to track concessions and management fee receivables. Instead, according to FINRA, the firm failed to adequately communicate outstanding liabilities to its financial and operations principal, an individual based out of another state and who “was routinely unable to substantiate financial numbers provided by the verb” or to verify documentation of deposits and withdrawals. FINRA’s findings state additionally that the firm did not have adequate procedures governing the review and approval of email correspondence, specifically stating that the CCO “was supposed to review the emails and move them to a separate folder on his computer for retention,” but that a review demonstrated that representatives had failed to copy him on all applicable emails, and that the CCO failed to ensure representatives copied him on such. Consequently, according to FINRA’s findings, the firm “failed to conduct the necessary review of electronic correspondence,” and additionally failed to establish and maintain a supervisory system adequate to remedy violations which FINRA “identified” in a previous examination. In connection with these findings, the firm was censured and issued a fine of $15,000.
In 2012 FINRA sanctioned the firm in connection to allegations it received an erroneous $30,000 payment to which it was not entitled for a private placement offering, failing to record the sum “for unearned revenue.” The firm was censured and issued a fine of $5,000.
If you have complaints regarding Vestech Securities, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recoup your losses. All cases are taken on contingency: we only receive payment if and when you recover money. You may have a limited window to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.