According to the Financial Industry Regulatory Authority (FINRA), Securities
America Inc. (CRD# 10205 / SEC# 8-26602) has agreed to pay $1.54 million
to eligible customers who did not receive mutual fund sales charge waivers,
despite being qualified for the waivers.
An estimated 1,500 customers were affected between July of 2009 and July
of 2015. The overcharges resulted in approximately $1.39 million in additional
fees for the customers; the final restitution of $1.54 million included
Securities America self-reported the overcharges to FINRA after initiating
an internal investigation to determine whether or not eligible customers
received their mutual fund sales charge waivers, and quickly took steps
to correct the conduct that lead to the violation.
FINRA began to target mutual fund overcharges back in May when they
requested information and documents from brokerage firms so they could conduct a targeted exam. In the notice sent out by FINRA,
they stated that:
"This inquiry should not be construed as an indication that FINRA
or its staff has determined that any violations of federal securities
laws or FINRA, NASD, NYSE, or MSRB rules have occurred.”
Securities America is the tenth broker-dealer ordered to pay restitution
for failing to offer or provide sales charge waivers to eligible accounts.
The largest payment ordered as from Wells Fargo for $15 million.
If you were not offered or provided a mutual fund sales charge waiver despite
being eligible for one, contact the securities fraud at Meyer Wilson today.
We handle all cases on a contingency fee basis, so you won’t owe
any legal fees unless we help you recover your losses.