The securities fraud attorneys at Fitapelli Kurta recently filed a complaint on behalf of a client against Summit Brokerage Services, Inc. stemming from allegations of churning, fraud, unsuitable trading recommendations and failure to supervise. This client received a large pension from a company that she was employed with for over twenty-five (25) years – Johnson & Johnson. The complaint against Summit Brokerage Services, Inc. alleges that the firm failed to supervise one of its brokers, who churned his client’s account without any consideration of her financial well-being. As a result, the Claimant sustained substantial damages in her accounts that she is seeking to recover, as her complaint against Summit Brokerage Services details.
Summit Brokerage Services, Inc. was incorporated in Florida in 1993 with its headquarters in Boca Raton, Florida. The firm has over 300 stock brokers across the country that operate in small branch offices and typically earn large commissions on equity investments. This type of organizational structure is ripe for failures in supervision and compliance, and can lead to customers being overcharged for stocks. Moreover, when brokers are motivated by commissions on each purchase and sale, they often put their own interests before the customer’s. Unfortunately, stock brokers are paid commissions whether the trades they recommend are profitable or are losers. This reality can ultimately lead to substantial losses in customer accounts.
Summit Brokerage Services, Inc. has ten (10) regulatory complaints listed on its FINRA BrokerCheck Report. A number of these complaints stem from the firm’s failure to adequately supervise its stock brokers. This is the same allegation contained in the complaint recently filed by our firm.
Most customers are unaware that the securities industry is highly regulated, and that any deviation from its regulations that impact the holdings of customers can result in liability to the firm. If you or someone you know has a complaint against Summit Brokerage Services, Inc., please contact the investment fraud attorneys at Fitapelli Kurta. We will review your accounts for free and let you know whether you have a valid complaint against the firm. Please contact us today for your free evaluation.