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Citizens Securities Was Recently Sanctioned in Connection to Alleged Rule Violations


Citizens Securities

Publicly available records published by the Financial Industry Regulatory Authority (FINRA) indicate that Massachusetts-based broker-dealer firm Citizens Securities was recently sanctioned by FINRA. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Citizens Securities (CRD# 39550).

Established in Rhode Island in 1995, Citizens Securities is headquartered in Dedham, Massachusetts and registered with 52 US states and territories. Frank Drago is President; Robert Howard is Executive Vice President, Director of Operations; Mark Pinocci is Chief Compliance Officer; Kevin Carvalho is Chief Financial Officer; Lawrence Seidl is Director of Sales; and Citizens Bank is the firm’s direct owner.

According to the firm’s BrokerCheck report, Citizens Securities was recently sanctioned by FINRA in connection to alleged rule violations.

In March 2017 FINRA sanctioned the firm following allegations it “disadvantaged certain retiredment plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.” FINRA’s findings stated further: “some of the mutual funds available on the firm’s retail platform offered such waivers and disclosed those waivers in their prospectuses. Notwithstanding the availability of the waivers, the firm failed to apply the waivers to mutual fund purchases made by eligible customers and instead sold them Class A shares with a front-end sales charge or Class B shares with back-end sales charges and higher ongoing fees and expenses.” FINRA concluded that “these sales disadvanted certain eligible customers by causing such customers to pay higher fees than they were actually required to pay.” The firm was censured and issued a fine of $50,000.

If you have lost money investing with Citizens Securities, you may be able to recover your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.