FINRA censured and fined Accelerated Capital Group $400,000 for failing to establish and maintain a supervisory system and written procedures reasonably designed to achieve compliance with applicable laws, regulations and rules. The investigation found that the Firm’s failures allowed a registered representative to engage in excessive and unsuitable transactions. The firm’s supervisory failures resulted in harm to vulnerable customers, five of them over the age of 80, and at least seven living on fixed incomes. These transactions resulted in over $650,000 in commissions.
The firm’s supervisory system was not reasonably designed to identify unauthorized, excessive, or unsuitable trades effected by representatives in their customers’ accounts. The system failed to ensure that representatives made customers aware of all commissions, costs and breakpoints associated with mutual fund transactions, specifically ones relating to Class A mutual funds and front-loaded fees. Additionally, the investigation found that the firm failed to report customer complaints and an internal disciplinary action to FINRA.
On March 15, 2019, an Office of Hearing Officers decision became final in which Accelerated Capital Group was censured and fined. It was also ordered to pay $422,029.53, plus interest, in restitution to six customers.
If you have not hired an attorney you may contact David A. Weintraub, P.A., 7805 SW 6th Court, Plantation, FL 33324. By phone: 954.693.7577 or 800.718.1422.