Accelerated Capital Group - Law Offices of Robert Wayne Pearce

Mar 8, 2018

Accelerated Capital Group Named in FINRA Complaint for Failure to Supervise Violations

Costa Mesa, California-based Accelerated Capital Group (Accelerated Capital) was named in a Financial Industry Regulatory Authority (FINRA) complaint alleging that the firm failed to establish and maintain a proper supervisory system to detect unsuitable, excessive, or unauthorized trading in customers’ accounts. FINRA’s complaint goes on to make numerous allegations regarding failures in the firm’s supervisory system. According to the FINRA complaint, Accelerated Capital Group failed to properly monitor, through its supervisory system and written supervisory procedures (WSPs), mutual fund switches, exchanges, and sales for suitability, and failed to appropriately identify or respond to red flags of broker misconduct. The complaint also alleges that the firm’s supervisory procedures failed to ensure that customers understood the differences in fees among mutual fund products. Further, FINRA’s complaint alleges that due to the inadequate supervisory systems, a registered representative was able to churn his customers’ accounts, allegedly resulting in customers sustaining more than $900,000 in trading losses and improper sales loads.

Accelerated Capital Broker Suspended for Unauthorized Mutual Fund Exchanges

Jeffrey Scheibner, a stockbroker formerly employed by Accelerated Capital Group, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000 and suspended for 3 months for allegedly making unauthorized mutual fund exchanges without the customers’ authorization or discretionary authority over their accounts. FINRA found that between August 24, 2015 and September 16, 2015, Jeffrey Lloyd Scheibner, of Ladera Ranch, California, exchanged 303 mutual fund positions into corresponding money market funds across 36 accounts. Mr. Scheibner allegedly did so without prior customer authorization and had no discretionary authority over the accounts. Without admitting or denying FINRA’s findings, Mr. Scheibner was suspended by FINRA for 3 months and assessed a fine of $5,000. The suspension is in effect from May 15, 2017 through August 14, 2017.