StockCross Financial Services and one of its brokers have been charged by Massachusetts regulators with improper trading practices. The firm and its broker Peter Cunningham of Los Angeles allegedly collected $750,000 in commissions on unit investment trust trades that resulted in losses for investors.
Broker Made Money Off of Improper Commissions
Cunningham recommended that his Massachusetts clients buy and then sell UITs before their maturity dates, resulting in high commissions for the broker and the firm and losses for the investors.
Regulators allege that Cunningham was deeply in debt and facing at least foreclosure on his home, which could have been a motive for generating excessive commissions. According to Cunningham’s FINRA BrokerCheck report, Cunningham has 13 disclosures over the course of his 24-year career in the securities industry. Many involve allegations by customers of unsuitable investments, negligence, fraud, and breach of fiduciary duty. Prior to joining Stockcross, Cunningham worked for TD Waterhouse (now TD Ameritrade) and was fired in 2001. The reason for termination was noted as multiple customer complaints.
Regulator Seeks Censure, Restitution, and Fines
The Massachusetts securities commissioner, William Galvin, also charged StockCross with failure to reasonably supervise its agent.
The complaint filed seeks an order to cease and desist, censure, restitution to fairly compensate investors, an administrative fine, and revocation for Cunningham. The complaint also requests a requirement that StockCross hire an independent compliance consultant to review its supervisory procedures.
Stockcross Financial Services is a Los Angeles-based brokerage firm with offices throughout the United States, including Boston, Florida, and New Jersey.
Have You Lost Money as a result of StockCross Financial Services?
If you lost money investing with former StockCross Financial Services broker Peter Cunningham or with Stockcross, or think you may be the victim of stockbroker misconduct, contact an experienced investment fraud attorney today.
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