Did you suffer investment losses with Concorde Investment Services (CRD# 8-68388) (SEC# 8-68388)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Concorde Investment Services. If you suffered losses investing with Concorde Investment Services, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
On June 12, 2017, Reuters published an article titled “Wall Street’s self-regulator blocks public scrutiny of firms with tainted brokers.” Because FINRA will not release data in bulk, Columbia University Law School DataLab provided Reuters with data it extracted from FINRA’s website using computer code it wrote. Reuters analyzed the data by “examin[ing] the 12 most serious incidents among the 23 that FINRA requires brokers to disclose.” Reuters analysis identified 48 firms that collectively “oversee about 4,600 brokers and billions of dollars in investor funds” where at least 30 percent of brokers have such disclosures on the records. That compares to nine percent of brokers industry-wide who have at least one of those 12 disclosures on their record. Concorde Investment Services was one of the 48 firms identified. According to Reuters’ analysis, Concorde Investment Services had 121 total brokers and 30.6% of those brokers had at least one of the disclosures on their record.
UPDATE 4/6/2020: Concorde Investment Services is listed as a sales compensation recipient for GPB Capital Holdings private placements. Bad news continues to pile up for investors of GPB Capital Holdings private placements. If you are concerned about investment losses in a GPB Capital Holdings private placement with Concorde Investment Services and would like a Free Consultation, then please contact us today.
As of August 8, 2020, Concorde Investment Services’s FINRA BrokerCheck Report contains the following:
2 Regulatory Event Disclosures
On July 21, 2020, Concorde Investment Services and the firm’s former Chief Compliance Officer, and current General Counsel, Kimberlee Elizabeth Levy, entered into a Letter of Acceptance Waiver and Consent with FINRA(the “AWC”). The AWC included allegations that Concorde failed to supervise its representatives sales of private placement investments, ignored clear red flags that private placements were being sold to non-accredited investors, ignoring clear red flags that private placements were being sold to investors they were not suitable for, ignoring clear red flags that documents had been falsified, ignoring clear red flags that a suspended representative was selling securities to Concorde Investment Services’ clients through his wife, failing to conduct adequate branch inspections, amongst other allegations. See Concorde Investment Services FINRA Letter of Acceptance, Waiver and Consent No. 2018060577602
In 2019, Concorde Investment Services entered into a Consent Resolution with the New Hampshire Bureau of Securities Regulations for allegations that include “fail[ing] to abide by their own policies” by allowing “account documents to be altered without customer approval or sign off and there was no sign off by compliance for the changes” and “fail[ure] to supervise.”
Main Office Location
19500 VICTOR PARKWAY
LIVONIA, MI 48152
19500 VICTOR PARKWAY
LIVONIA, MI 48152
Business Telephone Number
Concorde Investment Services’s Direct Owners and Executive Officers
CONCORDE HOLDINGS INC., OWNER / MANAGING MEMBER
DELONGCHAMP, DANIELLE LEIGH (CRD#:4901901), CHIEF INFORMATION OFFICER
HOFER, KATHLEEN ANN (CRD#:1087639), CHIEF OPERATING OFFICER, FINOP, CHIEF FINANCIAL OFFICER, PRINCIPAL FINANCIAL OFFICER, PRINCIPAL OPERATIONS OFFICER
JACKSON, STEPHEN ANDREW (CRD#:2532028), PRESIDENT
REGISTERED OPTIONS PRINCIPAL, AML PRINCIPAL
KAVANAUGH, JASON PATRICK (CRD#:2693303), CHIEF EXECUTIVE OFFICER
WITT, TIMOTHY MARK (CRD#:2638442), DUE DILIGENCE OFFICER
Due Diligence Requirement
FINRA requires broker-dealers to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Broker-Dealers that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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