Did you suffer investment losses with Alpine Securities Corporation (CRD# 14952) (SEC# 8-31464)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Alpine Securities Corporation. If you suffered losses investing with Alpine Securities Corporation, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of April 22, 2022, Alpine Securities Corporation’s FINRA BrokerCheck Report contains the following:
45 Regulatory Event Disclosures
See FINRA Disciplinary Proceeding No. 2019061232601 Complaint
1 Civil Event Disclosures
1 Arbitration Disclosures
UPDATE 9/22/2020: According to FINRA’s September 2019 Disciplinary Actions: “Alpine Securities Corporation (CRD #14952, Salt Lake City, Utah) July 25, 2019 – The firm was named a respondent in a FINRA complaint alleging that it converted customer funds. The complaint alleges that in the face of significant and mounting financial difficulties, the firm implemented a series of exorbitant and arbitrary fees. Among other unreasonable fees, the firm instituted a $5,000 monthly account fee, which represented an astounding increase of approximately 60,000% from its prior $100 annual account fee. The firm then used the fees as a pretext to convert its retail customer’s securities. The fees caused customers to incur significant debits in their accounts, at which point the firm told its customers that it would liquidate their securities or transfer them to proprietary accounts belonging to the firm in order to satisfy the debits. In a single month alone, the firm moved over $950,000 of customer’s securities to its proprietary accounts in order to cover these debits. The firm thus converted customer funds and securities ostensibly to pay Alpine’s exorbitant fees, including the $5,000 monthly account fee. In addition, the firm converted customer securities by misappropriating every customer position valued at $1,500 or less on the grounds that such securities were “worthless.” The firm also converted customers’ securities by deeming them abandoned and moving them into its abandoned securities accounts when the securities were not, in fact, abandoned. The firm was not entitled to any of the customer funds or securities over which it took ownership and it took customer funds and securities with the intent of depriving customers of their account assets. As a result of the firm’s conduct, customers were deprived of their account assets. The complaint also alleges that by taking customer funds and securities in the manner described above, the firm improperly used them for purposes not directed by the customers and commingled them with non-customer funds and securities. The complaint further alleges that the firm moved customer securities from their accounts to the firm’s proprietary account to cover outstanding debits, sold hundreds of customer positions to itself for a penny per position, and moved customer securities to its abandoned securities accounts without the customers’ authorization. In addition, the complaint alleges that the firm charged unfair prices and commissions by selling customer positions to itself for a penny per position when that price that was unfair and not reasonably related to the current market prices of the securities. Moreover, the complaint alleges that the firm assessed unreasonable and discriminatory fees to customers, including the $5,000 monthly fee that the firm charged to customers simply for having an account at the firm. In addition, the firm assessed the monthly account fee inconsistently and discriminatorily by waiving or reversing the fee for certain customers, simply because those customers complained or had more profitable accounts. The firm also charged a $1,500 fee to customers for certificate withdrawals and an illiquidity and volatility fee that were unreasonable. Furthermore, the complaint alleges that the firm made unauthorized capital withdrawals. The firm did not obtain FINRA’s approval for multiple payments to affiliates that exceeded 10 percent of the firm’s excess net capital. The purpose of the payments was to withdraw capital without FINRA’s approval, as part of a coordinated effort to dissipate firm assets. In total, through these payments, the firm withdrew over $2.8 million from the firm in a four-month period. On August 5, 2019, based upon the parties’ consent, FINRA’s OHO issued a Temporary Cease and Desist Consent Order. FINRA ordered the firm to cease and desist from any conduct constituting a conversion of customer funds and securities, from any conduct constituting a misuse of customer assets; and from effecting any unauthorized transactions in customer accounts. Further, the firm was ordered to cease and desist from placing debits in customer accounts resulting from its $5,000 monthly account fee; from transferring cash from customer accounts to cover debits resulting from its $5,000 monthly account fee; and from selling, journaling, or otherwise transferring securities from customer accounts to firm-owned accounts in order to satisfy debits resulting from its $5,000 monthly account fee. The firm was also ordered to reverse the $5,000 monthly account fee assessed in all currently open customer accounts; cease and desist from selling, journaling, or otherwise transferring securities from customer accounts on the grounds that it has deemed such securities to be worthless; cease and desist from selling, journaling, or otherwise transferring securities from customer accounts on the grounds that it has deemed such securities or accounts to be abandoned; restore any securities sold, journaled or otherwise transferred from customer accounts on the grounds that the firm deemed such securities as worthless; and cease and desist from charging the $1,500 re-certification fee, except that the firm shall be allowed to charge a fee for re-certification that is reasonable and does not exceed $1,000 per recertification. Moreover, the firm wasordered to cease and desist from charging the illiquidity and volatility fee, except that it shall be allowed to charge an illiquidity and volatility fee that is reasonable and does not exceed $250 per transaction. And the firm was ordered to provide a full accounting to FINRA, within ten business days of the issuance of the Order. (FINRA Case #2019061232601 Complaint)
UPDATE 8/16/19: FINRA has obtained a Cease and Desist Order against Alpine Securities Corporation in a proceeding dated August 5, 2019. Specifically, FINRA ordered the firm to cease and desist converting clients’ securities and funds, misusing their funds, and making unauthorized transactions in their accounts, among other actions demonstrating violations of FINRA Rules and/or Securities Laws. It appears that Alpine Securities Corporation may have violated securities laws by seemingly charging clients $5,000 a month as an “account fee”–a staggering increase over the $100 fee that clients had been paying. The firm was debiting the clients accounts in order to get its fees. FINRA ordered the firm to refund the fees. FINRA also ordered the firm to “restore” the clients’ assets that it purportedly journaled or sold without authorization. Allegedly, the firm determined that clients’ investments were of no value and moved the purportedly worthless securities to its accounts, claiming the clients abandoned their investments. As such, FINRA ordered the firm to restore the clients’ “abandoned” securities. Further, FINRA suggested that the firm charged clients excessive fees. Allegedly, the firm charged its clients a $1,500 “re-certification” fee, which allegedly exceeded the maximum charge allowed. It also appears that the firm charged clients unreasonable volatility and illiquidity fees. FINRA demanded that the firm account for its monthly fees and the securities or funds it potentially took without authorization and without any legitimate purpose.
Main Office Location
39 EXCHANGE PLACE
SALT LAKE CITY, UT 84111
UNITED STATES
Mailing Address
39 EXCHANGE PLACE
SALT LAKE CITY, UT 84111
UNITED STATES
Business Telephone Number
801-320-1313
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Alpine Securities Corporation’s Direct Owners and Executive Officers
SCA CLEARING LLC, SOLE SHAREHOLDER
FOX, ROBERT MICHAEL (CRD#: 4420688), CCO
MARATEA, RAYMOND JERRY (CRD#: 2538056), CEA
RIEDEL, RONN LESLIE (CRD#: 1566644), CFO, FINOP
WALSH, JOSEPH PATRICK (CRD#:1519958), COO
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker-dealers to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Broker-Dealers that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Alpine Securities Corporation and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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