Lucia Securities, LLC, a brokerage firm headquartered in San Diego, California, has been censured and fined $35,000.00 by Financial Industry Regulatory Authority (FINRA) by consenting to findings that the firm failed to supervise and preserve consolidated reports which had been distributed to the firm’s customers. Letter of Acceptance, Waiver and Consent, No. 2017055425901 (Jan. 9, 2018).

According to the AWC, the firm distributed documents to customers that combined information pertaining to the assets owned by customers at Lucia Securities, LLC as well as with other firms. Particularly, between January of 2016 and December of 2016, twenty of the firm’s employed representatives had established and transmitted at least eleven hundred Wealth Analysis Reports to customers.

The AWC stated that the firm’s supervision systems during this period were flawed because they did not consider that consolidated reports had been utilized, causing the firm not to utilize its supervisory protocols to make sure that the Wealth Analysis Reports were not misleading, inaccurate or unclear.

Further, the firm neglected to follow its own requirements for preserving documents. Evidently, registered representatives’ utilization of the consolidated reports went unmonitored. FINRA found that the firm’s supervisory failures were violative of FINRA Rules 2020 and 3110. Additionally, the firm’s failure to preserve the reports was conduct violative of FINRA Rules 2010 and 4511, as well as Securities and Exchange Act Section 17(a) and Rule 17a-4(b)(4).

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

This posting and the information on our website is for general information purposes only. This content , should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer

Guiliano Law Firm

Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at stockbrokerfraud.com

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com

Tags:

No comments yet.

Leave a Reply

Name (required)

Email (will not be published) (required)

Website

%d bloggers like this: