KlaymanToskesIndependent Financial Group (IFG): Investor Alert on Account Churning
Summary
Despite these consistent warnings, IFG’s compliance staff systematically closed these alerts without taking necessary corrective measures, such as calculating the cost-to-equity ratios which during this period ranged from 13.7% to 27.1%. Although IFG contacted two of the affected customers, there was no substantial discussion about the worrisome activity in their accounts nor were there any meaningful steps taken to limit the commission charges or curb the representative’s excessive trading practices. This lack of decisive action meant that the representative was able to continue trading aggressively, which was inconsistent with the customers’ investment profiles and contrary to their best interests. Collectively, these five customers incurred over $2.2 million in total trading costs and faced realized losses of approximately the same amount, underscoring the substantial financial impact of IFG’s negligence. If you believe your account was excessively traded by Independent Financial Group, you may be eligible to recover your losses through FINRA arbitration.