Thursday, December 12, 2013

Broker-Dealer Submits to State Consent Order

Early this month a Missouri based broker-dealer entered into a Consent Order with the Missouri Securities Division. In doing so, the broker-dealer consented to a finding that it failed to supervise one of its agents and failed to have in place sufficient policies and procedures to detect and identify violations of the securities laws by its agents.

The Cosgrove Law Group represented one of the clients victimized by the broker-dealer's agent. According to the Consent Order, the agent, now deceased, deposited at least eighty (80) checks from clients in his Gateway Financial Resources account, and used a portion of these funds for his personal expenses. The funds were generated in some instances pursuant to the agent's recommendation to client's that they liquidate their investments.

The broker-dealer paid at least $700,000 to the various victims and, pursuant to the Consent Order, over $100,000 to the State.  

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