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H.D. Vest Charged With Failures Related to Supervision

The SEC entered a Cease and Desist Order pursuant to an Offer of Settlement by H.D. Vest Investment Securities Inc.  The Order can be found here.

The SEC charged H.D. Vest with failing to implement proper supervisory procedures and policies that would have discovered and prevented a fraudulent scheme by one its brokers who wired monies out of customer accounts to an account controlled by the broker.  H.D. Vest further failed to monitor and preserve investment related emails from its brokers.

H.D. Vest was fined $225,000 and ordered to hire an independent consultant to recommend improvements to its supervisory systems.

Greco & Greco regularly represents investors in broker theft cases such as this.  Customers may attempt to recover their losses in FINRA arbitration and/or court by demonstrating firms’ failures to supervise, failure to follow up on red flags, and by arguing the firm is responsible for the acts of its agent under the legal theories of respondeat superior and vicarious liability.  Federal and state securities laws also mandate liability of control persons (such as brokerage firms) if certain requirements are met.  If you are a victim of broker theft, please contact one of our attorneys for a free consultation. Contact

Posted by Greco & Greco on 03/11 at 04:20 PM
ArbitrationBrokerage FirmsH.D. Vest InvestmentFINRAFraudSEC

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