A Florida investment brokerage with an office in Leawood has been censured and fined $60,000 and two of its brokers were suspended, including one in Leawood.
1st Discount Brokerage Inc. and the two brokers consented to the regulatory action by the federal Financial Industry Regulatory Authority, or FINRA.
Broker Mark Irwin Miller in Leawood served a one-month suspension that ended this week and paid $25,969.31 in fines and disgorgement of commissions in connection with customers’ sales of unregistered securities.
Miller, whose public record of complaints and actions by regulators has been clear since July 1992, declined to comment. Another broker with the firm in Florida also served a suspension and paid fines and disgorged commissions.
FINRA cited them for allowing customers to sell $2.75 million worth of low-priced securities without checking whether the investments were registered. They had relied on others to “determine whether (the) shares of stock were freely tradable,” a FINRA statement said.
The brokerage firm had not updated its written supervisory procedures and its anti-money laundering compliance program was deficient, FINRA said.
FINRA’s action against Miller and the firm was its first in the Kansas City area this year.
Federal and state regulators urge investors to check on their brokers and advisers, particularly before they invest. The actions in this case did not involve selling securities to investors.
To find information on a broker or adviser, ask for his CRD number to ensure checking the right person’s record. For example, there is another Mark Irwin Miller registered with a different firm in California, but the men have different CRD numbers with regulators.
Check out your broker
State and federal regulators offer information about investment brokers and urge investors to look before they invest.
800-232-9580 to request a background report or file a complaint
800-721-7996 investor protection hotline