In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Lombard Securities, Inc. of Baltimore, Maryland submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $50,000. The AWC can be found here.
FINRA’s allegations against Lombard Securities included that the firm failed to implement a supervisory system designed to prevent unsuitable mutual fund switching and the sale of inverse and leveraged exchange traded funds. FINRA found the firm’s supervisory system unreasonable which caused it to fail to detect the violations. .
FINRA also found that the firm failed to provide clients with sales charge discounts in their sales of unit investment trusts.
Lombard Securities’ registration and disciplinary history
In order to lawfully sell investments to the public, a firm must either be registered or exempt from registration. Lombard Securities is registered with FINRA, the SEC and in fifty states and territories.
According to FINRA’s CRD disclosure report, Lombard Securities has been the subject of two customer complaints and two regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.