Articles Tagged with Key Investment Services

Stoltmann Law Offices is interested in speaking to those investors who may have invested financially with Christopher Hermann, who was most recently registered as a broker with Key Investment Services in Greenwood, Indiana. Hermann was alleged by customers and former customers to have engaged in misrepresentation in the switching of $50,000 from Victory Diversified Stock Fund Class A to Putnam Capital Spectrum Fund Class A. He was also terminated from his position at Key after the firm received a complaint saying that he “identified transactions that were processed outside of the firm’s switch disclosure policy.” He also “recommended the sale of two fixed annuity contracts instead of a 1035 exchange in facilitating the purchase of a $450,000 variable annuity contract.” Hermann was also accused of misrepresenting the risk of an investment in RIBCX, misrepresenting material facts and recommending unsuitable mutual fund investments. He also allegedly breached fiduciary duty and recommended an unsuitable mutual fund. Please call our securities law office in Chicago to speak to an attorney about your options if you invested money with Christopher Hermann. We may be able to sue his former firm, Key Investment Services, in the FINRA arbitration forum for not properly supervising him while he was employed there.

The Financial Industry Regulatory Authority (FINRA) cracked down on Next Financial, Key Investment and Stephens for failing to give clients discounts for large purchases of investment products. The three firms were ordered to pay $1.2 million in fines and restitution. They were charged with failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) and related supervisory failures, according to the settlements. A UIT is an exchange-traded mutual fund offering a fixed portfolio of securities having a definite life. Each unit typically costs $1,000 and is sold to investors by brokers. They can be resold in the secondary market. They are held to maturity and typically issue redeemable securities or “units,” which means the UIT will buy back an investor’s units at the investor’s request, at their approximate net asset value, according to the Securities and Exchange Commission (SEC). Next Financial was fined $125,000 and ordered to pay restitution of $216,000, Key Investment Services was fined $100,000 and Stephens was fined $235,000 and ordered to pay restitution of $459,000. Next Financial and Key Investment Services failed to give discounts from June May 2009 to April 2014 and Stephens failed to give discounts from June 2010 to May 2015. In October, FINRA ordered 12 firms to pay restitution and fines of $6.7 million for failing to apply sales charge discounts on purchases of UITs and other supervisory related failures, and also fined six broker-dealers for failing to give discounts on large real estate investment trust (REIT) sales.

The Financial Industry Regulatory Authority (FINRA) cracked down on Next Financial, Key Investment and Stephens for failing to give clients discounts for large purchases of investment products. The three firms were ordered to pay $1.2 million in fines and restitution. They were charged with failing to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) and related supervisory failures, according to the settlements. A UIT is an exchange-traded mutual fund offering a fixed portfolio of securities having a definite life. Each unit typically costs $1,000 and is sold to investors by brokers. They can be resold in the secondary market. They are held to maturity and typically issue redeemable securities or “units,” which means the UIT will buy back an investor’s units at the investor’s request, at their approximate net asset value, according to the Securities and Exchange Commission (SEC). Next Financial was fined $125,000 and ordered to pay restitution of $216,000, Key Investment Services was fined $100,000 and Stephens was fined $235,000 and ordered to pay restitution of $459,000. Next Financial and Key Investment Services failed to give discounts from June May 2009 to April 2014 and Stephens failed to give discounts from June 2010 to May 2015. In October, FINRA ordered 12 firms to pay restitution and fines of $6.7 million for failing to apply sales charge discounts on purchases of UITs and other supervisory related failures, and also fined six broker-dealers for failing to give discounts on large real estate investment trust (REIT) sales.

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