Investors Capital Corporation
Investment Fraud Lawyers Can Help Recover Your Losses
Investors Capital Corporation is a full-service, independent broker-dealer
that was founded in 1992. This publicly traded firm provides trading,
operations, legal, compliance, marketing, practice management, advisory,
and technological capabilities and support to its almost 700 registered
representatives nationwide. With its headquarters located in Lynnfield,
MA, Investors Capital Corporation conducts business in over 400 branch
offices in all 50 states.
Inadequate Supervisory Procedure
With 700 representatives, Investors Capital has a particularly crucial
duty to supervise their brokers and hold them accountable when they behave
unethically or out of compliance with the law. Unfortunately, disciplinary
action for their lack of supervision and procedure indicates that this
duty is sometimes overlooked by the firm. For example, in 2011,
Investors Capital was fined $200,000 for failing to supervise a broker who traded securities that were unsuitable and inappropriate for the investor.
In this particular case, the securities were Interest-Only CMOs, which
are suitable only for “sophisticated investors with a high-risk
profile,” according to the Financial Industry Regulatory Authority (FINRA).
The firm not only provided inadequate training and information regarding
this particular type of security, but it failed to monitor the broker,
allowing him to sell the securities without informing his investors appropriately, who were
not informed of the trade’s high level of risk.
Investors Have Rights Granted to Them by FINRA
Because Investors Capital Corporation is licensed by FINRA, they are legally
obligated to create and enforce measures of supervision over their brokers.
Without supervision, brokers who act unethically or negligently can cause
their investors large losses. When brokers cause losses, FINRA has granted
investors the right to hold the firm directly responsible for repaying
any lost assets due to the representative’s negligent actions.
Meyer Wilson’s Investment Fraud Attorneys Uphold Your Rights
If an Investors Capital Corp. representative caused you losses negligently
or fraudulently, you have the right to hold Investors Capital accountable
for their lack of supervision. Meyer Wilson has the financial resources
to take on large investment firms, no matter how gigantic or well-equipped
they are. Our sole aim in our practice is recovering our clients’
lost assets—we won back $350 million for our clients because we have the skill and determination to return what is rightfully
yours. We represent clients nationwide in state and federal courts, as
wells as in arbitration with FINRA and the American Arbitration Association.
You may have a claim against Investors Capital Corporation. Contact us for a
free case evaluation so we can examine your options.