Equinox Securities Caused Massive Investment Losses, FINRA Alleges

According to a Complaint recently filed by FINRA (the Financial Industry Regulatory Authority), Equinox Securities may be responsible for decimating the retirement accounts of several investors.

FINRA alleges that Equinox financial advisor Chris Palkowitsh systematically drained client investment accounts. Here’s how the scheme worked:

1) Mr. Palkowitsh would sign up investors, promising to invest only a small percentage of their retirement accounts in stock while leaving the rest in cash;

2) Next, he would send the investors pre-populated new account forms that wildly overstated their financial sophistication and which stated that their investment objectives were speculation, when their investment objectives were usually much more conservative;

3) Mr. Palkowitsh would then execute hundreds or even thousands of trades in the accounts, racking up excessive commission charges and depleting the accounts even as his own payouts grew.

Equinox management failed to catch this scheme, possibly in part because Mr. Palkowitsh was their star, bringing more revenue to the firm than any other financial advisor. In fact, Equinox even paid Mr. Palkowitsh’s personal credit card bills to keep him afloat.

If you’ve suffered investment losses at Equinox securities, the investment fraud attorneys at Investor Defense Law LLP may be able to help you recover your losses.

Investor Defense Law LLP is a law firm dedicated to helping investors in CA, GA and WA recover losses caused by stockbrokers, financial advisors, and investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.