FINRA Takes Action Against Stockcross Financial Services

FINRA has censured and fined Beverly Hills, California brokerage firm StockCross Financial Services, Inc. $20,000 and required StockCross Financial Services to pay restitution to customers for improper charges on bond trades. FINRA found that from July 2009 through September 2009 StockCross Financial Services sold corporate bonds to customers and bought corporate bonds from customers at unfair prices.

Brokerage firms selling bonds to customers for excessive prices and buying bonds from customers at unreasonably low prices is a growing problem in the securities industry. Unfortunately, it can be very difficult for investors to detect this form of securities fraud.

Loose Rules Regarding Bond Trading Pricing

There is no hard and fast rule regarding how much a brokerage firm can mark up the price of a bond that they are selling to a customer or mark down the price of a bond that the firm is selling for a customer. As such, a detailed analysis of each bond trade is necessary to determine whether the pricing was fair and in compliance with industry rules.

All bond investors are at risk of being subject to unfair bond pricing. But investors with large corporate or municipal bond portfolios should be especially mindful of the risk of bond fraud.

Investors with multi-million dollar bond portfolios would be wise to have their bond trades evaluated to determine if they have received fair pricing on their bond trades.

Call a Securities Fraud Attorney Today

Dimond Kaplan & Rothstein currently is investigating such improper bond trading in customer accounts. If you think you may be involved in the case against Stockcross Financial Services, contact an attorney at Dimond, Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

EN   ES   PT     
855.650.5675



Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236




Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930




New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217




West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887




Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182