Brokerage Firm Review: Columbus Advisory Group

What Investors Need to Know About Complaints and Regulatory Actions Involving Columbus Advisory Group

Columbus Advisory Group ComplaintsColumbus Advisory Group (CRD#: 126331/SEC#: 8-65875) is a registered brokerage firm.

With a main office in New York, NY, the firm is regulated by FINRA and licensed to operate in 35 U.S. states as well as in the District of Columbia.

According to BrokerChecker, there are 6 total disclosure related to this firm, including 4 regulatory actions and 2 FINRA arbitration awards.

At Sonn Law Group, our securities fraud lawyers are currently investigating cases involving the Columbus Advisory Group.

Below, we list some recent sanctions and complaints against this firm. In addition, our team also keeps updated links of news stories involving representatives of Columbus Advisory Group.

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Columbus Advisory Group: Notable Investor Complaints and Regulatory Sanctions

Employing an Unregistered Agent

In November of 2014, the Connecticut Securities and Business Investments Division brought regulatory enforcement action against Columbus Advisory Group. State authorities determined that this broker-dealer improperly employed an unregistered agent.

Essentially, the agent worked as a “cold caller” for the firm. Connecticut regulators called the business practices used by the brokerage firm in this specific case “dishonest or unethical”. Without admitting or denying any misconduct, the Columbus Advisory Group paid an $8,500 monetary penalty to the state of Connecticut.

 

Violation of the Securities Exchange Act of 1934

Under federal securities regulations, brokerage firms have a duty to comply with certain basic industry standards. Indeed, brokerage firms must follow all relevant state and federal securities laws as well as any applicable FINRA rules.

In September of 2013, the Securities and Exchange Commission (SEC) determined that the Columbus Advisory Group breached its legal duties under the Securities Exchange Act of 1934. Specifically, the brokerage firm is alleged to have improperly charged a non-attributable $40 fee to each of its customers.

In addition, investigators determined that this broker-dealer made material misrepresentations to customers regarding this fee. The SEC issued a $30,000 fine to the Columbus Advisory Group.

 

FINRA Arbitration Claim: Breach of Fiduciary Duty

In May of 2009, a FINRA arbitration panel based in New York, New York heard a case involving the Columbus Advisory Group. An investor of the firm brought a complaint after allegedly suffering losses in an unspecified security.

In the Statement of Claim, the customer raised several different specific causes of action, including breach of fiduciary duty, broker negligence, material misrepresentations, and excessive trading. After hearing the case and reviewing the evidence presented, the arbitration panel ruling in favor of the investor — awarded the $49,243.19 in financial compensation.


At Sonn Law Group, our broker negligence attorneys are proud to be strong and aggressive advocates for investors throughout the United States. If you suffered significant investment losses working with Columbus Advisory Group or any of the firm’s financial advisor, our legal team is here to help. To get a free, no obligation initial legal consultation, please do not hesitate to contact our law firm today.