Regulators charge systemic fraud at Sutter Securities. The Financial Industry Regulatory Agency (FINRA) filed suit against Sutter for such violations on January 20, 2026.
Between March 2020 and July 2021 (the relevant period), Sutter, acting through a former Sutter broker, allegedly recommended and effected 2,217 trades in two accounts belonging to a retired, 89-year-old customer. Those trades led the customer to pay staggering costs—exceeding $2.9 million.
This staggering loss amount includes commissions representing nearly 35 percent of the firm’s total commission revenue during this period. Those trades also resulted in annualized cost-to-equity ratios of 46 and 38 percent—meaning the accounts needed to appreciate by these excessive percentages just to break even. Collectively, the elderly investor suffered $1.2 million in realized losses during the 17 months his accounts were open at Sutter.
This type of fraud is considered to be in violation of Regulation BI. This regulation requires brokerage firms to act in the best interests of its investors.
Jeffrey Pederson represents investor for violations of Reg BI. Call for a free initial consultation.
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