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Janney Montgomery Scott, LLC

Background Information

Janney Montgomery Scott (JMS) is a full-service financial services firm headquartered in Philadelphia, PA. JMS is a subsidiary of The Penn Mutual Life Insurance Company with holdings of over $50 billion, offering financial advisory and brokerage services to individual, corporate and institutional investors.

Regulatory Violations

Janney Montgomery Scott has been the subject of many regulatory investigations, some of which resulted in disciplinary actions by regulators.

Florida Office of Financial Regulation Fines Janney Montgomery Scott

In April 2011, Florida Office of Financial Regulation fined JMS $10,000.00 for failing to comply with the terms of registration agreements of four associated persons. In one instance, JMS was required to notify the Office in writing within 15 days of any complaint or action filed against an associated person which directly or indirectly involved his employment in the securities industry. JMS did not notice the Office that the person’s registration as a salesperson was revoked in Illinois. This person was also conducting business temporarily from his vacation home in Minnesota when he was required to conduct business in Florida. In several other instances, the associated person was either required to conduct business at one location, but was instead conducting it at another and the Office was not notified, or the associated person was required to be supervised by one individual, but was supervised by another and, again, the Office was not notified.

FINRA Fines and Sanctions – Janney Montgomery Scott, LLC

Source: FINRA, Financial Industry Regulatory Authority, Inc. Full Disciplinary Reports Available to the public at: finra.org.

Janney Montgomery Scott, LLC (CRD #463, Philadelphia, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $52,500. Without admitting or denying the findings, the firm [JMS] consented to the described sanctions and the entry of findings that, among other violations, they failed to have in place an adequate supervisory system and procedures to ensure the activities of associated persons are in compliance with applicable securities laws and regulations. These failures were related to fail to deliver positions in customer accounts that did not comply with close-out requirements. (FINRA Case #2011028261501)

Janney Montgomery Scott, LLC (CRD #463, Philadelphia, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $200,000. Without admitting or denying the findings, the firm [JMS] consented to the described sanctions and the entry of findings that they violated rules regarding communications with public in its marketing and sales of Auction Rate Securities (ARS) and failed to maintain adequate supervisory procedures concerning these marketing and sales activities. JMS used marketing materials that, among other things, did not contain adequate disclosure of the risks of ARS, including that the ARS auctions could fail, the investments become illiquid and that customers might be unable to obtain access to funds invested in ARS for substantial periods of time. JMS also failed to maintain policies and procedures that were reasonably designed to ensure registered representatives accurately described ARS to customers and provided customers full disclosure of the risks of investing in ARS. JMS failed to provide adequate training to registered representatives regarding the features and characteristics of ARS. (FINRA Case #2008013056401)

Silver Law Group

Silver Law Group is a nationally recognized securities and investment fraud law firm with Martindale-Hubbell® Peer Review Ratings™ “AV” rated lawyers that handle all securities arbitration matters on a contingency fee basis. The Law Firm, at no cost to investors will review account activity and account statements to determine whether there was any misconduct, whether there are damages and the legal causes of action. We investigate all sales practice violations, while taking into consideration the investor’s age, investment background, and the relationship between the investor and the brokerage firm and its financial advisor. According to securities industry rules and regulations, unsuitable investment advice, securities concentration, fraudulent misrepresentations and omissions of material facts, breach of fiduciary duty, conflicts of interest, variable annuity switching are among the causes of action that may be available to investors in claims for damages against brokerage firms and their financial advisors in a securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA). We represent investors in FINRA arbitration claims on a contingency fee basis.

To learn more call us at (954) 755-4799 or Toll Free at (800) 975-4345

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