If you trusted a big financial company like ProEquities, Inc. with your investment portfolio and have suffered losses, you may have fallen victim to negligence if the firm or its representatives engaged in misconduct.. An investment fraud lawyer from our team will investigate your account and help recover your losses if you have a valid claim.
Meyer Wilson can be your ally. With over 75 years of collective experience recovering hundreds of millions of dollars for victims of securities fraud, we have the necessary insight and resources to conduct successful claims against large brokerage firms. Call us today for a free initial consultation.
About ProEquities, Inc.
Founded in 1986, ProEquities, Inc. served as a full-service brokerage firm based in Birmingham, Alabama. ProEquities was a wholly-owned subsidiary of Protective Life Insurance Company and had more than 1,200 independent registered representatives and financial advisors throughout the 50 states.
ProEquities, Inc. was a securities brokerage firm licensed by the Financial Industry Regulatory Authority (FINRA). As such, they were responsible for acting in the best interests of their clients. When ProEquities or its registered brokers violate securities industry regulations, which are put in place to keep investors safe, FINRA could fine them or take other disciplinary actions.
ProEquities, Inc. Is Now Concourse Financial Group Securities
Effective July 19, 2021, ProEquities, Inc. was rebranded to combine business lines and boost clients. Thus, they became Concourse Financial Group Securities. A total of three entities merged under the Concourse Identity. The new firm also included First Protective Agency and Protective Distributors (both Protective Life subsidiaries).
Did You Lose Money Investing With ProEquities, Inc.?
The strategy proposed by your broker must align with your risk tolerance and financial goals. If they fail to adapt the financial advice to your specific needs, they can be held liable for negligence.
There are many other ways financial advisors can break your trust. If you notice any suspicious activity in your account, seek immediate legal assistance from an experienced investment fraud lawyer. By taking prompt action, you can prevent further damage and increase the chances of recovering your losses.
Complaints against ProEquities, Inc. include allegations of negligence and fraud. Negligence claims often revolve around lapses in professional standards, inadequate advice, or failure to fulfill fiduciary responsibilities. On the other hand, fraud allegations imply intentional deception, misrepresentation, or deceitful practices, suggesting a deliberate effort to mislead clients for financial gain.
Misrepresentation and Inappropriate Investments
Formerly registered with ProEquities Inc., Bradley John Freimark has faced customer-initiated investment-related arbitration claims, including one that settled for $100,000 in damages. The allegations revolved around accusations of misrepresentations made to the customer and inappropriate investment of the customer’s assets.
According to FINRA, Freimark is referenced in twenty-four additional customer-initiated investment-related disputes, alluding to misconduct during his time with ProEquities Inc.
One such arbitration claim, settled for $52,000.00 in damages, accused Freimark of breaching contractual and fiduciary duties, negligent transactions, inappropriate recommendations regarding investments, and committing fraud.
Mutual Fund Abuse
Mutual funds are investment vehicles that pool money from multiple investors to collectively invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional managers, who make investment decisions on behalf of the investors. Each investor in a mutual fund owns shares, representing a portion of the holdings of the fund.
A FINRA investigation into ProEquities Inc. revealed that certain charitable organizations and retirement plan customers eligible to purchase Class A shares in mutual funds without a front-end sales charge were disadvantaged. Instead, they were sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees.
The company failed to implement changes in a reasonable time that would ensure qualifying clients received the benefit of applicable sales charge waivers.
Negligent Supervision
Brokerage firms like ProEquities are responsible for ensuring the appropriate supervision of their financial advisors. Failing to adhere to industry standards can lead to legal consequences, including lawsuits.
Negligent supervision in the financial industry refers to the failure of financial institutions to oversee and manage the activities of their agents adequately. It implies a lack of proper monitoring, guidance, or enforcement of compliance with industry regulations and internal policies.
FINRA’s investigation into ProEquities uncovered multiple supervisory rule violations:
- Failure to establish, maintain, and enforce adequate written procedures for supervising sales of non-traditional exchange-traded funds.
- Failure to establish, maintain, and enforce written procedures for supervising the creation and dissemination of consolidated reports.
- Not enforcing written procedures related to the supervision of registered persons conducting investment-advisory business through an independent registered investment advisor.
- Failure to enforce provisions of written procedures regarding the supervision of annuities and exchange transactions.
Regulatory bodies, such as FINRA, closely scrutinize allegations of negligent supervision, and firms found lacking in their supervisory responsibilities may face fines, penalties, and reputational damage.
What to Do If You’re a Victim of Investment Misconduct
If you lost a substantial amount of money after investing with ProEquities, we invite you to contact an investment loss lawyer at Meyer Wilson. Stockbrokers and brokerage firms have a duty to act in their clients’ best interests.
Unfortunately, in an attempt to act in their own best interests, brokers and firms can participate in fraud and other types of misconduct that harm the investor. That’s where we intervene.
Contact Securities Litigation Lawyers Today
If brokers at ProEquities, Inc. acted in their own interest instead of yours, you will need a skilled and experienced ally to pursue an investment fraud claim against them.
Our investment loss lawyers can conduct claims in arbitration with FINRA and AAA, as well as privately. Furthermore, Meyer Wilson attorneys also seek action against firms in state and federal courts nationwide. Our firm even represents clients internationally who have claims against United States investment firms. Contact us today to discuss your legal options for a ProEquities lawsuit.