E.S. Financial Services, Inc. (ESF) of Miami, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly charging customers additional commission fees without their knowledge as well as keeping inaccurate books and records. ESF faced similar allegations in 2007 for allegedly failing to maintain accurate books and records.
FINRA found that ESF essentially created another source of revenue by charging its customers additional fees. Between September 1, 2011 and October 31, 2012 ESF allegedly charged its customers “a transaction fee and a custody fee in addition to a commission on fixed income transactions.” FINRA alleged that the fees were not related to services provided by ESF and therefore a violation of NASD 2430 and FINRA Conduct Rule 2010.
FINRA also found that ESF failed to establish a proper supervisory system as well as maintained false books and records that reflected transactions were solicited when they were not. Without admitting or denying the findings, ESF, now known as Brickell Global Markets, Inc., agreed to the FINRA sanctions, was censured, and ordered to pay a $275,000 fine.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers such as E.S. Financial Services or Brickell Global Markets to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as E.S. Financial Services or Brickell Global Markets own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like E.S. Financial Services or Brickell Global Markets, who should consistently oversee their employees in order to prevent stockbroker misconduct.
Have you suffered losses in your E.S. Financial Services or Brickell Global Markets investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
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