The Leaders Group Fined $95,000 for Numerous Supervisory Failures

The Leaders Group, a securities brokerage firm based out of Littleton, Colorado, was recently fined $95,000 dollars for numerous supervisory failures.  FINRA (the Financial Industry Regulatory Authority) found that between May 2012 and September 2014, The Leaders Group had several supervisory missteps, including: a) failed to adequately monitor the use of consolidated reports by its representatives; b) failed to conduct inspections of non-branch offices; c) had deficient heightened supervision procedures; d) failed to document and review outside business activities; and e) had deficiencies related to sales of variable annuities.

FINRA also required that the Leaders Group to amend its compliance procedures to address these issues.

Brokerage firms like The Leaders Group have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; and Seattle, Washington.  We represent investors in FINRA arbitration proceedings in all 50 states, including investors throughout the Denver area.  Attorney Aaron Israels is licensed to practice law in Colorado and regularly represents clients in the Denver area. Our attorneys have represented over one thousand investors against many brokerage firms in the past.

Click to view:  Leaders Group BrokerCheck 7.2.18

If you lost money with The Leaders Group, please CONTACT US at 720-599-3505 for a free evaluation of your case.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency.  Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency.  All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact.  This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice.  Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis.  In contingent representation, clients may still be liable for costs.