Brokerage Firm Review: Janney Montgomery Scott LLC

What Investors Should Know About Regulatory Complaints and Investors Complaints Brought Against Janney Montgomery Scott

Janney Montgomery Scott ComplaintsJanney Montgomery Scott LLC (CRD#: 463/SEC#: 801-7258,8-462) is a registered broker-dealer and investment advisory firm based in Philadelphia, Pennsylvania. The firm is regulated by FINRA and the SEC.

BrokerCheck indicates that Janney Montgomery Scott has 113 total disclosures on its securities industry record, including 48 regulatory events and 64 FINRA arbitration awards.

At Sonn Law Group, our investment fraud lawyers are currently investigating claims against Janney Montgomery Scott.

Below, we highlight some of the most notable recent complaints and sanctions involving this firm. In addition to that, you will also find a running list of claims and news stories related to brokers and financial advisors of the firm.

Do you have a complaint about Janney Montgomery Scott? We want to hear it.

Browse Janney Montgomery Scott Financial Complaint and Regulatory Action News

Janney Montgomery Scott: Notable Investor Complaints and Regulatory Sanctions

Failure to Supervise Its Securities Representative

In July of 2016, the Pennsylvania Department of Banking and Securities brought an enforcement action against Janney Montgomery Scott for its alleged failure to supervise a securities representative.

State regulators determined that a former agent of Janney Montgomery Scott was able to pull off a fraud scheme because of the firm’s failure to conduct basic oversight. In relation to this case, the broker-dealer was fined $125,000 and ordered to pay $10,000 in investigative costs.

 

Materially Misleading Disclosures: Municipal Securities

In February of 2016, the Securities and Exchange Commission (SEC) brought a complaint against Janney Montgomery Scott after a report that the broker-dealer made material misrepresentations in relation to municipal securities that were being offered to  investors.

It should be noted that the SEC credited the firm for self-reporting this issue. Janney Montgomery Scott agreed to pay a $500,000 civil penalty and to review and revise policies and procedures to address the matter.

 

FINRA Arbitration Award: Unauthorized Trading

In February of 2019, a FINRA arbitration panel based in Boston, MA awarded a former Janney Montgomery Scott investor $115,780.01 in financial compensation for losses related to unauthorized trading and the alleged violations of state and federal securities regulations.

 

FINRA Arbitration Award: Material Misrepresentations

In June of 2016, a FINRA arbitration panel in Pittsburgh, PA ruled against Janney Montgomery Scott. The underlying complaint was related to allegations that a representative of this brokerage firm made material misrepresentations to an investor.

In fact, the representative in this case allegedly failed to invest the customer’s money at all, instead purportedly diverting the funds. In reviewing the claim, the arbitration panel determined that Janney Montgomery Scott was liable for its failure to properly supervise the financial advisor. The brokerage firm was ordered to pay $320,488.77 in financial compensation to the claimant.


At Sonn Law Group, our FINRA arbitration lawyers are proud to be leading advocates for investors nationwide. If you suffered serious investment losses investing with Janney Montgomery Scott or any Janney Montgomery Scott financial advisor, we are available to help. For a free, no strings attached initial consultation, please contact our legal team right away.

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