Established in Dallas, Texas in 1972, Southwest Securities, Inc. is a subsidiary of SWS Group, Inc. Southwest Securities is now a member firm of the New York Stock Exchange and the largest Texas-based broker-dealer. As a full-service brokerage firm, Southwest Securities sells insurance, securities, and other investment products and services and provides managed accounts to individual investors and small businesses.
Licensed by the Financial Industry Regulatory Authority (FINRA), Southwest Securities is obligated to create systems of supervision and oversight over their representatives. These systems ensure that Southwest brokers are acting in their clients’ interests within the confines of the law. When oversight fails and brokers violate regulations in ways that cause damages to investor assets, firms can be held legally liable to reimburse losses.
Southwest Securities unfortunately has a significant history of regulation violation and abuse of trading laws. Their behavior of this kind often results in massive losses or defrauding for clients. Some significant disciplinary actions in Southwest Securities’ history includes illegal activity and outright deception to both clients and legal authorities.
Some mutual funds have discounts available to investors, but many of these discounts went unreported to clients at Southwest Securities, despite their moral and legal obligation to act in the clients’ interests. In an investigation of their accounts, it was found that over 90% of Southwest Securities mutual fund investors were entitled to discounts that they were never notified about.
The lack of discounts allowed brokers to receive higher commissions at the expense of their customers. Southwest was forced to pay out to their clients the amount they would have received under the discounts that were hidden from them.
Trading after the markets close is known as “late trading,” and it allows brokers to take advantage of end-of-day prices without reporting any loss in shared value to investors. In short, brokers rob existing investors in order to draw new ones in. Southwest Securities paid $10 million in fines for deceptive late trading, in addition to fines levied against three senior officers at Southwest Securities.
Our investment fraud attorneys are prepared to step in on your behalf and fight for your lost assets. We do not believe that investment firms should be able to get away with profiting at your expense, and we do not let them. our firm recovered over $350 million for our clients from brokerage firms. Let our experienced, aggressive attorneys use our extensive resources to fight for you. Our firm practices in all 50 states, representing clients both here and abroad against U.S. investment firms. We conduct claims in state and federal courts, as wells as in arbitration with FINRA and the American Arbitration Association.
