Cetera Financial Group is placing advisers at Summit and other firms
Independent financial adviser network Cetera Financial Group has taken steps toward relocating advisers at J. P. Turner & Co. after making the decision to close the firm. According to Investment News, about 50 percent of its current advisers have been invited to join Summit Brokerage Services Inc. while the remainder are reportedly being redistributed elsewhere among the firms under Cetera’s umbrella.
The firm’s closure may come as little surprise to those who are aware of its reputation. Investment News InvestmentNews reports Pershing LLC did not want to allow J.P. Turner on its platform. Pershing provides “global financial solutions” to advisers and broker-dealers, according to its website.
According to FINRA, J. P. Turner, which was founded in 1997, has made 37 disclosures, the most recent initiated by FINRA on July 28 in regards to an alleged failure to report information about transactions, resulting in a censure and $22,500 fine. J. P. Turner did not affirm or deny any of the allegations made in that disclosure, but agreed to the sanctions.
In March, the firm was sanctioned in the form of a censure and $100,000 fine for allegedly lacking adequate supervisory procedures, according to FINRA. FINRA found that this lack of oversight may have led to more than 40 representatives distributing reports to customers without any assurance of validity.
In 2014, the firm agreed to a settlement in which it was found that it willfully violated the Securities Exchange Act by not establishing supervisory procedures. The firm paid a fine of $65,000 and accepted the finding but neither confirmed nor denied the allegations, according to FINRA.
In October 2006, FINRA said the firm was fined more than $200,000 following a variety of alleged FINRA rule violations, including paying commissions to people who were not registered members of FINRA and failing to disclose facts and risks involved with certain offerings.
Other past allegations against J. P. Turner include failing to obtain certain customer information, failing to report obligatory disclosures and routinely contacting customers who had asked to be placed on their “do not call” list, according to FINRA’s BrokerCheck report.
Despite transitioning all of J. P. Turner’s advisers to other firms under its umbrella, Cetera is still on the hook for the firm’s past reputation, customer complaints and any outstanding resulting damages. Its customer disputes and regulatory actions date back to 1998, two years after its inception, when the firm allegedly conducted business in Missouri before procuring registration in the state. Former J.P. Turner clients with securities arbitration claims against the firm will still be able to pursue those claims.
J.P. Turner has been the subject of multiple arbitration claims involving allegations of churning, misrepresentations regarding alternative investments and selling away.
If you are an investor who has been negatively impacted by the actions of J. P. Turner, any of its associates or any financial adviser, Silver Law Group may be able to help. Many investors who may be entitled to loss recovery do not know their legal rights, but the attorneys at Silver Law Group are skilled and experienced in securities arbitration, and we are dedicated to helping people like you navigate your options.
Contact us today to discuss your rights. Silver Law Group works on a contingency fee basis, which means you won’t pay unless your case is won.