Can FINRAs CEO Create a New Era of Transparency?

The law offices of The Frankowski Firm, LLC are investigating customer complaints concerning Westpark Capital, Inc. for the potential sale of unsuitable investments to their customers and failure to diversify these customers’ accounts. The firm has its headquarters in Los Angeles, California, and FINRA records show it has been registered with both the SEC and FINRA since July 1999.

Westpark Capital is no stranger to scrutiny. In 2010, FINRA ordered the firm to pay a sum of $400,000.00 for supervisory system failures. The regulator also suspended two officers for failing to supervise representatives in two New York branches who allegedly churned customer accounts and engaged in unsuitable and unauthorized trading in several customers’ accounts. The monetary sum included a $100,000.00 fine and $300,000.00 in restitution to the injured customers.

In that case, FINRA found that a number of the brokers hired by Westpark Capital at the time came from firms with long histories of disciplinary records, a number of which FINRA had expelled. According to the regulator, a number of the brokers themselves also had records that contained multiple customer complaints and/or disciplinary actions. FINRA stated that when a firm and its senior managers have reason to be aware of possible problems and fail to address them adequately, they have not fulfilled their supervisory obligations.

Securities brokerage firms have a legal duty to supervise their registered representatives and their recommendations to make sure they are complying with the rules of the securities industry. When a particular representative is negligent or acts in an unlawful fashion against the interest of the customer and that customer endures damages as the result of the wrongdoing, the firm may be held liable for the customer’s losses.

Have you suffered financial losses due to the misconduct of a broker? We can help you. The attorneys at The Frankowski Firm are dedicated to representing victims of securities broker fraud and negligence throughout the United States. To talk with one of our lawyers, please call us today at 888.741.7503 or fill out this contact form.