Mr. Larry Phillips of Purshe Kaplan Sterling Investments and Phillips Group Advisors was recently fined for double-charging clients. Mr. Philips purchased notes, certificates of deposit, and municipal securities for clients, charging a commission. Then he placed them in advisory accounts where he charged a percentage of assets under management, essentially double-charging clients for his services.
The Financial Industry Regulatory Authority has rules that stop financial advisors from charging excessive fees for their services. For violating these rules, Mr. Phillips was fined, ordered to pay restitution, and suspended from the securities industry for 45 days.
Unfortunately, double-charging investors is too common in the securities industry, especially when a financial advisor charges both an asset management fee and commissions for executing trades. This is one more reason why investors should read their investment account statements carefully.
If you believe that you have been charged excessive fees for financial services, contact the investment fraud lawyers at Investor Defense Law LLP for a free consultation. They may be able to help you recover your losses.
Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington recover losses caused by stockbrokers, financial advisors, or investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.