FINRA Sanctions 12 Firms a Total of $6.7 Million for Failing to Apply Sales Charge Discounts to Customers' Purchases of UITs

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More than $4 Million in Restitution Ordered to Affected Customers

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FINRA ordered 12 firms to pay restitution totaling more than $4 million and fines totaling more than $2.6 million for failing to apply available sales charge discounts to customers' purchases of Unit Investment Trusts (UITs), and related supervisory failures.

FINRA imposed sanctions against the following firms:

  • First Allied Securities, Inc. of San Diego, CA, was ordered to pay $689,647 in restitution and fined $325,000.
  • Fifth Third Securities, Inc. of Cincinnati, OH, was ordered to pay $663,534 in restitution and fined $300,000.
  • Securities America, Inc. of La Vista, NE, was ordered to pay $477,686 in restitution and fined $275,000.
  • Cetera Advisors LLC of Denver, CO, was ordered to pay $452,622 in restitution and fined $250,000.
  • Park Avenue Securities LLC of New York, NY, was ordered to pay $443,255 in restitution and fined $300,000.
  • Commonwealth Financial Network of Waltham, MA, was ordered to pay $357,521 in restitution and fined $225,000.
  • MetLife Securities, Inc. of New York, NY, was ordered to pay $349,748 in restitution and fined $300,000.
  • Comerica Securities of Detroit, MI, was ordered to pay $197,757 in restitution and fined $150,000.
  • Cetera Advisor Networks LLC of El Segundo, CA, was ordered to pay $151,108 in restitution and fined $150,000.
  • Ameritas Investment Corp. of Lincoln, NE, was ordered to pay $128,544 in restitution and fined $150,000.
  • Infinex Investments, Inc. of Meridian, CT, was ordered to pay $109,627 in restitution and fined $150,000.
  • The Huntington Investment Company of Columbus, OH, was ordered to pay $60,973 in restitution and fined $75,000.

A UIT is a type of investment company that offers redeemable units of a generally fixed portfolio of securities that terminate on a specific date. UIT sponsors generally offer sales charge discounts to investors, known as "breakpoint discounts" and "rollover and exchange discounts." A breakpoint discount is a reduced sales charge based on the dollar amount of the purchase-the higher the amount the greater the discount. Breakpoints generally function as a sliding reduction in the sales charge percentage available for purchases, usually beginning at $25,000 or $50,000 (or the corresponding number of units). A rollover or exchange discount is a reduced sales charge that is offered to investors who use the termination or redemption proceeds from one UIT to purchase another UIT.

If you lost money after investing with these firms, or any other related financial adviser, you may be able to recover your losses through securities arbitration. Our securities fraud law firm is here to help our clients recover their losses. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Contact us TODAY for a FREE Consultation and case evaluation.