The White Law Group reviews the regulatory history of Concourse Financial Group (Proequities Inc.).
Concourse Financial Group Securities (Proequities Inc.) (CRD#: 15708/SEC#: 801-56010,8-32590) headquartered in Birmingham, Alabama, is a dual registered national financial advisory firm with $139 million in revenue in 2021. It is one of the fifty largest independent brokerage firms in the US, according to data from Investment News. According to FINRA, the firm reportedly has 68 disclosures on its broker record including 64 regulatory actions and 4 arbitrations. The firm rebranded from the name Proequities Inc. to Concourse Financial Group Securities in June 2021.
Arbitrations on a broker-dealers CRD (Central Registration Depository) refer to the resolution of disputes between a broker-dealer and a client or between broker-dealers themselves through the FINRA arbitration process.
Regulatory actions taken against a broker-dealer may include censures, fines, suspensions and restitution, among others. They can have serious consequences for a broker-dealer’s profile and reputation. Concourse Financial Group (fka Proequities Inc.) has also reportedly had 64 regulatory actions disclosed on their broker report, including the following:
FINRA Sanctions Concourse Financial Group (fka Proequities Inc.)
In March 2019, FINRA reportedly sanctioned ProEquities Inc. for alleged mutual fund overcharges.
Between January 1, 2011, and March 2016, ProEquities allegedly disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge. These eligible customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses.
ProEquities reportedly failed to establish and maintain a supervisory system and procedures during this time reasonably designed to ensure that eligible customers who purchased mutual fund shares received the benefit of applicable sales charge waivers.
FINRA censured and fined ProEquities, Inc. In 2016 for allegedly failing to supervise recommendations of complex products such as leveraged, inverse, or inverse-leveraged exchange traded funds (“’Non-Traditional ETFs”). FINRA censured ProEquities and ordered it to pay $200,000.
In 2015, FINRA reportedly censured and fined ProEquities $165,000 for failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts in violation of FINRA Rule 2010. The firm allegedly failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that customers received sales charge discounts on all eligible UIT purchases.
Concourse Financial Group (fka Proequities Inc.) Broker Misconduct and Customer Complaints
All broker-dealers have a responsibility to adequately supervise their employees. They must ensure the necessary procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
There have been several cases of registered representatives employed by Concourse Financial Group (fka Proequities Inc.) who were allegedly involved in broker misconduct and fraudulent activities.
On May 27, 2020, the state of Montana reportedly initiated a regulatory action against Lindberg for allegations of “Fraud, Unsuitable recommendations, Breach of Fiduciary Duty.” The action is currently pending, according to FINRA.
On April 2, 2019, the Alabama Securities Commission reportedly filed a complaint against Lindberg for the following allegations: “1. failed to inform his broker dealer of 2 customer complaints 2. failed to adequately disclose risks of options program to clients. 3. Failed to update his form adv to reflect disciplinary events. 4. Failed to uphold his duty as a fiduciary to his clients. 5. Failed to follow his own policies and procedures.” The action is currently pending, according to FINRA.
Lindberg was reportedly registered with Proequities for 30 years before he was discharged for “failure to disclose complaints and settlement…” He reportedly has three customer complaints filed against him. Allegations include unsuitable options transactions, among others.
The White Law Group files a claim against Proequities, Inc.
In 2018, the White Law Group filed a FINRA Dispute Resolution claim on behalf of a Big Lake, Minnesota resident alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim alleged that Proequities, Inc. unsuitably invested its client in a high-risk oil and gas private placement investment. Bradley Freimark was the financial advisor of record at the time of the investment recommendations.
According to FINRA Broker Check, Freimark has 25 customer complaints on his record. Allegations include fraud, negligence, misrepresentation and unsuitable investments, among others. Freimark was registered with Proequities Inc. in Otsego, MN for fifteen years.
Concourse Financial Group Securities (fka Proequities Inc.) Failure to Supervise
The FINRA supervision rule (FINRA Rule 3110) helps to ensure that firms have effective supervisory systems in place to protect investors and maintain the integrity of the securities markets.
FINRA Rule 3110 is designed to protect investors by requiring firms to establish and maintain a supervisory system that is reasonably designed to achieve compliance with applicable securities laws, regulations, and FINRA rules. This helps to ensure that the firm and its associated persons conduct business in an ethical and compliant manner, reducing the risk of harm to investors.
The rule requires firms to designate one or more qualified individuals to be responsible for supervising the activities of the firm and its associated persons. These individuals are responsible for ensuring that the firm’s supervisory procedures are effective in detecting and preventing violations of securities laws and regulations.
Firms must also review and monitor customer account activity to detect and prevent potential violations, and conduct periodic inspections of the firm’s offices and other locations where business is conducted.
Hiring a FINRA Attorney
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
If your broker has defrauded you, you may be able to file a claim with FINRA to seek resolution through arbitration. FINRA arbitration can be a complex and technical process, and having an experienced attorney who is knowledgeable about securities law can greatly increase your chances of success.
The FINRA attorneys at the White Law Group can help you with many aspects of the arbitration process including evaluating the merits of your claim and determining whether you have a strong case for arbitration.
The White Law Group can assist you in drafting a statement of claim that accurately reflects the allegations of fraud and the damages you are seeking. They will also represent you at the arbitration hearing, present evidence and make arguments on your behalf. They can also negotiate a settlement on your behalf, which may be an option to consider before going to arbitration.
Working with a FINRA attorney can help ensure that your interests are protected throughout the FINRA arbitration process, and that you have the best possible chance of achieving a favorable outcome.
Keep in mind, FINRA arbitration is generally a faster and less expensive alternative to a traditional court proceeding.
National Securities Attorneys – the White Law Group
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, the White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.
If you have concerns regarding investments you purchased through Concourse Financial Group (fka Proequities Inc.) and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on The White Law Group, visit whitesecuritieslaw.com.
Tags: Concourse Financial Group Securities, failure to supervise, FINRA arbitration, Proequities Inc., Unit Investment Trusts Last modified: July 20, 2023