Signator Investors Fined $450,000 for Inadequate Supervisory Procedures

Signator Investors Fined $450,000 for Inadequate Supervisory Procedures

Signator Investors Fined $450,000 for Inadequate Supervisory Procedures 150 150 Robert Rex, Esq.

August 13, 2015- Loudon, Tennessee/ Boston, MA

Signator Investors, Inc. , entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that between from May 2004 until March 2014 Signator failed to establish and maintain a reasonable supervisory system regarding the use of consolidated statements by its brokers.

Signator’s flawed system allowed brokers to enter customized values for assets and accounts held away from the firm and did not have a satisfactory way to to determine the accuracy of valuations manually entered by the brokers.

Gregory Mitchell, who was also a party to the AWC,  served as Agency Compliance Specialist for Signator’s offices in Vienna, VA, and Towson, MD.   Between 2009 and 2014,  FINRA found that Mitchell failed to enforce the firm’s policies and procedures related to client reviews and branch audits by providing advance notice of which client files would be reviewed, as well as advance notice of unannounced branch audits, in violation of NASD Rule 3010(b) and FINRA Rule 2010.

James Glover, a Signator broker at the Towson, Maryland branch office had sold over $13 million worth of Colonial, an investment in residential and commercial real estate. Glover had prepared and issued over 300 of the faulty consolidated reports including  inaccurate values for Colonial, which, due to the inadequate supervisory procedures of Signator, had gone undetected.

AWC No. 2012032782402

Signator  was  censured and fined $450,000.

Mitchell was fined $10,000 and suspended for seven months.

Signator and its predecessor company  has been a FINRA member since 1968,   is headquartered in San Antonio, Texas, and has over 1,500 brokers in 314 branch offices.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

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