The Financial Industry Regulatory Authority (FINRA) fined former CM Securities, LLC Chief Compliance Officer Erin Christine Ackerman of Henderson, Nevada $20,000 and suspended her through December 17, 2013, for failure to establish and maintain a system designed to supervise the activities of brokers within the firm. Her failures, FINRA alleged ultimately resulted in significant customer losses.
FINRA alleged that between 2004 and 2008, Ackerman's failure to establish supervisory systems related to the sales of real estate investment trust shares resulted in several subordinate brokers improperly recommending transactions that placed a significantly and unsuitably high concentration of these securities in customer accounts.
FINRA claimed that because of these unsuitable recommendations, customers purchased $1,679,304 worth of real estate investment trust shares, which due to devaluation and the company filing for involuntary bankruptcy, resulted in multiple CM Securities customers losing their entire investments.
FINRA found that Ackerman had neglected to perform a supervisory review that would have identified these concentration red flags and addressed the problems presented by the brokers' recommendations, which would have diminished the massive risks CM Securities, LLC customers incurred by investing based on the unsuitable recommendations.
If you invested with CM Securities, LLC and believe the firm and Ackerman's lack of adequate supervisory systems have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.