FINRA Fines Pointe Capital, Inc. (n/k/a JHS Capital Advisors, Inc.) for Excessive Commissions
The Financial Industry Regulatory Authority (FINRA) recently announced it has fined Pointe Capital, Inc. (“Pointe”) of Boca Raton, Florida, $300,000.00 for mischaracterizing a portion of the commission charges as fees for handling services. The fines also include additional violations for inadequate supervisory procedures relating to private placements. Specifically, Pointe charged customers a handling fee as high as $95.00 per trade in addition to a commission.
FINRA has sanctioned other firms for similar misconduct relating to understating commissions:
• John Thomas Financial (“John Thomas”) of New York, New York was fined $275,000.00. John Thomas charged its customers a handling fee as high as $75.00 per trade in addition to a commission; and
• First Midwest Securities, Inc. (“First MidWest) of Bloomington, Illinois was fined $150,000.00. First Midwest charged customers a handling fee as high as $99.00 per trade in addition to a commission.
FINRA’s resolution of these matters does not include full restitution for investors charged these handling fees.
Blum & Silver, LLP is investigating Wall Street’s failure to disclose all fees and costs charged by broker-dealers including improper postage and handling fees. If you were a customer of a broker-dealer that charged you a questionable postage and handling fee, contact the law firm of Blum & Silver, LLP at 1-877-STOCK-LAW (1-877-786-2552) or silver@stockattorneys.com for a free consultation. Blum & Silver, LLP represents investors worldwide in securities litigation and arbitration matters.
