Securities Lawyers Blog
Is a brokerage firm responsible for broker misconduct? Under FINRA rules, a firm such as Montrose Securities International must supervise the financial advisors it registers, and it can be held liable in FINRA arbitration when a broker’s unsuitable recommendations, unauthorized trading, or misrepresentations cause investment losses. The broker misconduct attorneys at Gana Weinstein LLP bring these claims on behalf of investors and can evaluate whether a firm failed to supervise your broker.
Montrose Securities International is a small independent broker-dealer that provides securities brokerage services to its clients. Incorporated in California in 1993 and registered with the SEC since 1994, the privately owned firm is based in Sausalito, California.
Montrose Securities International – By the Numbers:
- CRD #: 35603
- Regulatory Events: 2
- Broker Employees: 2
Montrose Securities International – In the News:
FINRA v. Montrose Securities International (Case #2019061008601) – From January 2017 through November 2018, Leung inaccurately classified certain of his personal expenses as business expenses on Montrose Securities’ general ledger, in violation of FINRA Rule 2010. Leung then used the inaccurate general ledger to prepare monthly FOCUS reports which were also inaccurate, understating the amount paid to Leung and overstating the firm’s business expenses. Because Leung’s conduct caused the firm’s books and records to be inaccurate, Leung further violated FINRA Rules 4511 and 2010; his conduct also caused Montrose Securities to have inaccurate books and records, in violation of Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3 and 17a-5 thereunder, and FINRA Rules 4511 and 2010. In addition, from January 2017 through November 2018, Montrose Securities and Leung failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), regarding business expense reimbursement reasonably designed to ensure compliance with FINRA Rule 4511 and Section 17(a) of the Exchange Act and Rules 17a-3 and 17a-5 thereunder. Based on the foregoing, Montrose and Leung violated FINRA Rules 3110(a) and (b), and 2010.
Gana Weinstein LLP represents investors nationwide, including customers of Montrose Securities International, in FINRA arbitration claims to recover investment losses caused by unsuitable investments, failure to supervise, and other broker misconduct. Our consultations are free and there is no obligation.