Brokerage Firm Review: Money Concepts Capital Corp.

Money Concepts Capital Corp (“Money Concepts Capital”) (CRD#12963) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Money Concepts Capital, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.

If you believe you have a claim against Money Concepts Capital, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

Can I Sue Money Concepts Capital?

If you’ve lost money caused by Money Concepts Capital and/or its employees’ misconduct then the answer is, YES, you can sue Money Concepts Capital, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Money Concepts Capital in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Money Concepts Capital is to call Attorney Pearce at our office at 800-732-2889.

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

What is Money Concepts Capital?

Money Concepts Capital (CRD#12963) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.

As a registered broker-dealer, Money Concepts Capital is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.

A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.

Money Concepts Capital Has Many Different Regulatory Problems 

Money Concepts Capital’s rapid growth has not been without consequences. There have been approximately 8 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Money Concepts Capital for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record. 

We have reported and written about these regulatory problems and customer complaints over many years. Money Concepts Capital is a repeat offender: there are over 8 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.

A Brief Overview of Some of the Regulatory Problems Money Concepts Capital Has Faced Over the Years*

Money Concepts Capital has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:

Ohio Division of Securities Issues Cease-and-Desist Order to Money Concepts Capital Corp. for Concentration of REITs in Customer Accounts

Brief Overview: The Ohio Division of Securities initiated an investigation with lead to Money Concepts Capital Corp. voluntarily entering into a consent agreement for sales of real estate investment trusts. Specifically, it was found that Ohio investors identified as having been sold REITs more than Ohio’s 10 percent liquid net worth concentration limit. Indeed, REITs sold in amounts greater than 10 percent of clients liquid-net-worth violated prospectus guidelines. The sanctions ordered by the Ohio Division of Securities included a cease-and desist order and restitution/rescission.

FINRA Censures and Fines Money Concepts Capital Corp. for Failure to Amend Forms U4 and U5 for Disclosable Matters

Brief Overview: Without admitting or denying the findings, Money Concepts Capital Corp. consented to the described sanctions and to the entry of findings that it failed to timely report five customer-related matters disclosable under NASD Rules and failed to timely amend Forms U4 for six registered representatives to report six disclosable customer matters and one Form U5 to report a disclosable customer-related matter. As result, Money Capital Concepts was censured and fined.

Texas State Securities Board Fines Money Concepts Capital Corp. for Failing to Abide by Rules Requiring Registration of Branch Offices

Brief Overview: The State of Texas Securities Board initiated an investigation wherein it alleged that Money Concepts Capital Corp. had failed to fully comply with rules requiring all offices in Texas of a registered securities dealer where records are maintained, or the supervision of registered persons take place be registered as a branch office within the state. Though the firm had registered all representatives with the NASD, Money Concepts Capital Corp. failed to register each office as a branch office. The firm immediately registered all offices that met the definition as a branch office. The firm also reviewed the internal compliance system to ensure its compliance with Texas state operations. As a result, Money Concepts Capital agreed to probation for a period of one year and was fined $2,500.

Illinois Securities Department Censures and Fines Money Concepts Capital Corp. for Failing to File Financial Document

Brief Overview: The Illinois Securities Department initiated an investigation into Money Concepts Capital Corp. and alleged the firm failed to timely file required financial documents with the Secretary of State. A notice of hearing to determine whether an order of revocation, suspension, or censure should be imposed against the firm was issued. A consent order of censure was later issued against the firm respondent and included a fine based upon the findings that the firm failed to timely file financials with the Illinois Securities Department.

Why Does Money Concepts Capital Have So Many Regulatory Problems And Customer Complaints?

Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.

The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers. 

Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.

These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.

Did Money Concepts Capital Advisor Misconduct Cause You Investment Losses?

When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Money Concepts Capital is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting [Money Concepts Capital without representation with an attorney about their complaints and have their complaints denied.

Related Read: Can You Sue Your Brokerage Firm?

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Consult With An Attorney Who Recovers Investment Losses Caused By Money Concepts Capital Today!

The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Money Concepts Capital cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.

Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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