WARNING! Impending Investigation – FIFTH THIRD SECURITIES
Fifth Third Securities Ordered to Pay $6 Million for Supervisory Failures Related to Variable Annuities
Fifth Third Securities, a securities brokerage firm based out of Cincinnati, Ohio, was recently fined $4 million dollars and ordered to pay another $2 million in restitution for numerous supervisory failures. FINRA (the Financial Industry Regulatory Authority) found that between May 2008 and September 2014, Fifth Third Securities had several supervisory missteps, including its failure to adequately supervise the exchange of variable annuities.
FINRA alleged that Fifth Third Securities was previously the subject of a regulatory action in 2009, where FINRA alleged that Fifth Third Securities failed to adequately supervise variable annuity transactions. Despite this prior action, FINRA alleged that Fifth Third Securities failed to correct its prior misdeeds. FINRA alleged that Fifth Third Securities sold over $165 million in variable annuities during this timeframe and generated over $8 million in commissions from these sales. FINRA also alleged that Fifth Third Securities representatives made material misrepresentations and omissions in connection with the variable annuity exchanges.
Brokerage firms like Fifth Third Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Fifth Third Securities FINRA AWC
If you lost money with Fifth Third Securities, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
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