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Written by 2:46 pm Current Investigations

The Investment Center, Inc. Fined $50,000 for Broker Misconduct

Have you suffered losses investing with The Investment Center, Inc.? If so, the White Law Group may be able to help.

The Texas State Securities Board ordered The Investment Center, Inc. a securities dealer located in Bedminster, New Jersey and registered in Texas to pay $50,000 for allegedly failing to supervise a broker who overloaded clients’ accounts with energy stocks.

According to the consent order, between January 2010 and March 2014 the Agent recommended that certain clients purchase securities that raised red flags related to the suitability of the Agent’s recommendations for those clients based on their investment profiles.

In addition, certain clients at the firm held 95% of their total investible assets in equities in the energy sector, at the agent’s recommendation, the order alleges. In some instances, all of those shares were in one company, despite the clients’ low tolerance for risk, according to the document.

Despite the red flags raised by the unidentified agent’s sales activity, The Investment Center, Inc. allegedly failed to reasonably supervise this activity.

The White Law Group is investigating the liability that The Investment Center, Inc. may have for losses sustained by their clients. Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that advisors violated FINRA rules and its employers failed to adequately supervise them, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.

For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.

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