Summit Brokerage Services was sanctioned by FINRA in July 2019. The findings in this matter were that between January 2012 and March 2017, the firm ignored automated alerts regarding its brokers’ trading activity. It was determined by FINRA that had Summit Brokerage Services paid attention to these alerts, they would become aware of multiple instances of excessive trading taking place.
In particular, one of Summit’s representatives traded securities in the accounts of fourteen customers so excessively that it is unreasonable to assume that Summit Brokerage Services could have missed it had they been paying attention to the alerts. One example of this broker’s conduct includes him placing 533 trades for a retired individual over a three-year period. This in turn caused her to pay over $171,000 in commissions alone. The conduct of this broker resulted in over 150 alerts for possible excessive trading. Alerts that should have been reviewed by Summit Brokerage Services.
Summit Brokerage Services exhibited a substantial lack of over-sight when monitoring broker activities between 2012 and 2017. According to FINRA rules, securities firms have an obligation to have supervisory procedures in place to monitor their registered representatives. Due tot this failure, Summit Brokerage Services was forced to pay over $550,000 in restitution to afflicted customers. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing at Summit Brokerage Services, please contact Oakes & Fosher for a free and private consultation, as you may be entitled to some damages.
