Vanderbilt Securities, LLC (“Vanderbilt Securities”) (CRD#5953) 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 Vanderbilt Securities, 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 Vanderbilt Securities, 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 Vanderbilt Securities?
If you’ve lost money caused by Vanderbilt Securities and/or its employees’ misconduct then the answer is, YES, you can sue Vanderbilt Securities, 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 Vanderbilt Securities in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Vanderbilt Securities 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.
or, give us a ring at (800) 732-2889.
What is Vanderbilt Securities?
Vanderbilt Securities (CRD#5953) 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, Vanderbilt Securities 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.
Vanderbilt Securities Has Many Different Regulatory Problems
Vanderbilt Securities’ rapid growth has not been without consequences. There have been approximately 5 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 Vanderbilt Securities 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. Vanderbilt Securities is a repeat offender: there are over 5 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Vanderbilt Securities Has Faced Over the Years*
Vanderbilt Securities 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:
FINRA Censures and Fines Vanderbilt Securities for Excessive Trading and Churning in Customer Accounts
Brief Overview: Without admitting or denying the findings, Vanderbilt Securities consented to the sanctions and to the entry of FINRA findings that it failed to establish and maintain a supervisory system reasonably designed to identify and prevent unsuitable excessive trading and churning in customer accounts. FINRA stated that although the firm’s written supervisory procedures acknowledged that frequent transactions in the same security could be unsuitable, they did not provide any guidance for detecting or preventing excessive trading or churning. FINRA also detailed that the firm’s supervisory procedures did not provide any guidance about how to determine whether further action was warranted and did not require that any action be taken when a customer’s account appeared on the activity report. As a result, the firm was censured and fined $100,000.
Connecticut Banking Division Fines Vanderbilt Securities for Ex-Registered Representative’s Misconduct
Brief Overview: The Connecticut banking commissioner entered a consent order with Vanderbilt Securities for allegations of unregistered investment advisory activity, fraud, and misappropriation by a registered representative. This registered representative, the sole managing member and control person of Deer Hill Financial Group, LLC, also conducted tax preparation, financial planning, and investment advisory services. Pursuant to the consent order with FINRA the consent order revoked the representative’s registration as a broker-dealer agent and permanently barred both Deer Hill Financial Group, and him from transacting securities business in or from Connecticut. The consent order with Vanderbilt Securities also alleged that the firm failed to establish, enforce, and maintain a system for supervising the activities of its agents and its Connecticut office operations reasonably designed to achieve compliance with applicable securities laws and regulations. As a result, the firm was fined.
SEC Censures Vanderbilt Securities and Orders the Firm to Cease-and-Desist for Misrepresenting Trade Prices
Brief Overview: The SEC issued a cease-and-desist order that alleged Vanderbilt Securities executed approximately 184 over-the-counter trades on behalf of customers at a certain price and misrepresented to them that they had executed the trade at a price less favorable to its 2 customers than the actual price of the trade. The SEC also alleged that the customers paid or received the less favorable price for the trade and that the firm retained the difference between the actual price of the trade and the price customers paid or received as trading profits. Such trading profits ranged between 1/8 and 1/16 per share, and the firm earned a total of approximately $18,000 in undisclosed trading profits; and the firm prepared brokerage documents that reflected different and less favorable prices than the actual execution price for the over-the-counter trades described above. As a result, Vanderbilt Securities was censured.
*Above are only some of the regulatory disciplinary actions filed against Vanderbilt Securities by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.
Vanderbilt Securities Customer Complaints
There have been scores of customer complaints filed against Vanderbilt Securities stockbrokers and investment advisors over the years. We have launched many investigations of current and former Vanderbilt Securities advisors:
- Stephen Trask of Vanderbilt Securities
- Erik Moreau of Vanderbilt Securities LLC
- Timothy McGrath of Vanderbilt Securities, LLC
- Joseph Johnson of Vanderbilt Securities, LLC
- Kurt Berry formerly with Vanderbilt Securities, LLC
- Ian Geeves formerly with Vanderbilt Securities, LLC
- Jeffrey Gitterman of Vanderbilt Securities, LLC Reviews
If you have lost money investing with any of these Vanderbilt Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Vanderbilt Securities 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 Vanderbilt Securities 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. Vanderbilt Securities 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 Vanderbilt Securities 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.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Vanderbilt Securities 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 Vanderbilt Securities 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.
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