Published on:

First Dallas Securities Was Recently Sanctioned by FINRA


First Dallas Securities

Publicly available records published by the Financial Industry Regulatory Authority (FINRA) on June 9, 2017 indicate that Texas-based brokerage and advisory firm First Dallas Securities was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding First Dallas Securities (CRD# 24549).

Established in Texas in 1988, First Dallas Securities is headquartered in Dallas, Texas and registered with 48 US states and territories. Craig Hodges is Chief Executive Officer; Robert Kerch Jr. is Chief Compliance officer, Financial Operations Principal and President. The firm is registered with the Securities and Exchange Commission, FINRA and two other self-regulatory organizations.

According to the firm’s BrokerCheck report, First Dallas Securities was recently sanctioned by FINRA.

In March 2017 FINRA sanctioned the firm following allegations it “improperly charged ticket charges in at least 449 transactions involving 129 accounts for clients of its affiliated Registered Investment Advisor” and as such “did not have an adequate supervisory system to ensure that customers of its affiliated RIA were charged the appropriate ticket charge, and thereby violated NASD Rule 3010(a) and FINRA Rule 2010.” According to a letter of Acceptance, Waiver and Consent (No. 2014039095801) signed by the firm: “First Dallas is affiliated with HCM, an SEC-registered RIA. Trades on behalf of HCM’s clients are placed through First Dallas’ trade processing platform, which incurs transaction and handling fees that are assessed by First Dallas’ clearing firm. Some or all of these fees are passed on by First Dallas to HCM’s clients in the form of a ticket charge… First Dallas failed to have a supervisory system in place to ensure that each customer was charged only the fee that was disclosed in that customer’s advisory agreement. As a result, the Firm often assessed a ticket charge that was different than the disclosed amount, and in many cases, this fee resulted in the customer being charged a fee that exceeded the agreed amount. These improper charges also were assessed in connection with the processing of block trades, which generally resulted in the assessment of a higher processing fee for brokerage transactions.” The firm allegedly charged its customers “a total of $42,530 in 449 transactions” in 129 client accounts, charges which have since been reimbursed. The firm was censured and issued a fine of $45,000.

If you or someone you know has a complaint regarding First Dallas Securities, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.