Jeffrey Pederson, PC represents those suffering losses with NPB Financial Group. Please contact us if you suffered losses with an NPB broker from investments made during the time period of 2012 through 2014. Regulators have recently alleged supervisory lapses at NPB. Call 1-866-817-0201 to speak to a private attorney about potential rights of recovery.
Regulators with the Financial Industry Regulatory Authority, FINRA, the regulator that acts under the oversight of the SEC and has primary authority in overseeing securities brokerages, have recently brought a regulatory action against NPB for significant supervisory lapses. NPB settle these charges without admitting or denying fault.
The allegations by FINRA are that from June 2012 through May 2014, NPB failed to: (i) establish, maintain, and enforce adequate procedures for the review of email, (ii) NPB failed to review the email of the firm’s president, chief executive officer, and chief compliance officer, and (iii) it failed to adequately enforce its own procedures regarding the use of non-firm email addresses, such as G-mail or AOL, by its brokers in violation, a regulatory rule violation designed to prevent fraud.
The shortcomings are all violations of rules designed to prevent fraud by its brokers. Brokerage firms are required to review the written communications of its brokers to make sure that all recommended investments, even those an NPB broker recommends away from NPB, are appropriate. The requirement that brokers utilize e-mail that passes through the brokerage is also important for cyber security to prevent accounts from being accessed by hackers.
Supervisory lapses likely contributed to the recently discovered misdeeds of John Oldham, an NPB broker from Wisconsin, who consented to allegations that he had engaged in improper fee sharing and allocation of responsibilities in the sale of REITs and other alternative investment products. These lapses likely also led to the misdeeds of Stephen Kipp.
Jeffrey Pederson PC specializes in the handling of individual or group actions against securities brokerage firms. Call to explore your rights.