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 Law Group 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 Law Group at 1-877-STOCK-LAW (1-877-786-2552) or firstname.lastname@example.org for a free consultation. Blum Law Group represents investors worldwide in securities litigation and arbitration matters.