FINRA Sanctions Summit Brokerage Services for Excessive Trading

FINRA recently announced sanctions against Summit Brokerage Services, Inc. for supervisory failures relating to excessive trading.  Summit has agreed to pay over $880,000 for its supervisory failures, including over $500,000 in restitution to customers whose accounts were excessively traded. According to FINRA, a former Summit registered representative – who FINRA previously had barred – committed the excessive trading. 

Specifically, FINRA found that from January 2012 through March 2017, Summit failed to review over 150 alerts that identified the excessive trading.  FINRA found that Summit therefore failed to detect that one of its stockbrokers had excessively traded 14 customer accounts, resulting in hundreds of thousands of dollars in commissions.  FINRA previously had barred the stockbroker. 

“In this matter, the affected customers paid hundreds of thousands of dollars in commissions as a result of the excessive trading that occurred in their accounts,” said Susan Schroeder, FINRA’s executive vice president of the department of enforcement. “This enforcement action reflects the fact that obtaining restitution for harmed customers remains our highest priority.”

If you feel you have been a victim of excessive trading – whether committed by Summit or another brokerage firm – please contact us. Attorneys Jared Levy (561-812-1541) and Aiman Farooq (954-327-3041) will be happy to discuss your potential claims for excessive trading or any investment losses you suffered with a brokerage firm or registered investment advisor.

The Morgan & Morgan Business Trial Group helps investors recover their financial losses on a contingency basis.  You will never be charged hourly fees or expensive retainers. We are only paid if we successfully recover money for you.  

The Business Trial Group is backed by the size and skill of the largest contingency law firm in the nation – with more than 700 lawyers and offices throughout the country.  We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.