EJ Sterling, now known as Allied Millennial Partners, Ordered to Pay $35,000 for Supervisory Failures
EJ Sterling, a securities brokerage firm based out of New York City, was recently ordered to pay partial restitution of $35,000 for supervisory failures. FINRA (the Financial Industry Regulatory Authority) found that between January 2014 and June 2015, EJ Sterling had several supervisory missteps, including that it allowed the excessive trading or churning to continue with inadequate oversight.
FINRA alleged that due to its failure to detect excessive trading or churning, 33 accounts had been excessively traded or churned. FINRA also alleged that the accounts had turnovers ranging from 20 to 140, and the cost equity ratios ranged from 20% to 154%. To put this in perspective, if an account had a cost equity ratio of 100%, that means the account would have to double itself just to break even from the costs of trading.
Brokerage firms like EJ Sterling 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; Seattle, Washington; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
If you lost money with EJ Sterling, 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.