Alleged Ponzi-Schemer Patricia Miller's Former Brokerage Firm Has Paid Over $4 million in Fines and Penalties in Recent Years for Failure to Supervise
Investors Capital Corporation Has History of Significant Supervisory Problems, Regulatory Documents Show
Meyer Wilson, which is representing various investors who lost money in former Pennsylvania stockbroker Patricia S. Miller’s alleged Ponzi scheme, has uncovered that Miller’s former brokerage firm, Investors Capital Corporation (ICC), paid over $4 million in fines and penalties to regulators since 2006 for failing to maintain adequate supervisory systems and properly supervise the conduct of its brokers.
Miller was registered with ICC until May 21, 2014, when her employment was abruptly terminated in the wake of allegations that she was potentially defrauding investors.
Documents filed by federal and state regulators show that ICC has a history of significant supervisory problems and paid millions in fines and penalties in recent years as a result of numerous actions taken by regulators to address ICC’s lax supervision and improper oversight.
* In March 2014, the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization that polices brokerage firms, fined ICC $100,000 for failing to disclose important information to customers regarding investments sold by the firm. FINRA’s findings stated that ICC “failed to establish an adequate supervisory system.”
* In November 2011, FINRA required ICC to disgorge over $400,000 in commissions paid by customers who purchased risky alternative investments from the firm. FINRA’s findings stated that despite ICC’s “inadequate supervisory system and lack of due diligence procedures, the firm approved a number of offerings for sale.”
* In July 2011, FINRA fined ICC $200,000 and found that the firm “failed to establish and maintain an adequate supervisory system … that was reasonably designed to achieve compliance with applicable securities laws.”
* In October 2010, the Massachusetts Securities Division fined ICC $300,000 for the improper sale of investments by one of ICC’s brokers.
* In May 2009, the Massachusetts Securities Division fined ICC $250,000 and ordered that two ICC customers be reimbursed $1,735,000 for funds misappropriated by an ICC broker.
* In January 2006, the Pennsylvania Securities Commission fined ICC $160,000 and ordered the firm to reimburse the state $90,000 in investigative costs for failing to supervise its brokers selling investments in Pennsylvania.
* In December 2006, the Massachusetts Securities Division fined ICC $1,000,000 relating to improper outside business activities engaged in by the firm’s brokers.
The investment fraud attorneys at Meyer Wilson are currently representing clients who lost investments in the Patricia Miller scheme and we continue to receive calls from additional victims. The law firm expects to be filing a lawsuit in court or an arbitration claim with the Financial Industry Regulatory Authority to recover the investment losses.
Investors who believe they may have lost money as a result of investment fraud or misconduct of broker Patricia Miller may contact Meyer Wilson and speak to an attorney for a free, no-obligation evaluation of their recovery options. Please call toll-free at 888-390-6491. All of the firm's cases are handled on a contingency fee and no retainer is requested. The seven attorneys at Meyer Wilson have handled nearly 1,000 investment fraud case over the past 15 years.