Galvin fines Texas broker-dealer $100K

BOSTON – Massachusetts last week fined a Texas-based broker-dealer $100,000, saying it sold unsuitable investment products on the premises of local financial institutions.

The fine, ordered by Secretary of the Commonwealth William F. Galvin, was assessed on Investment Professional Inc., a San Antonio-based broker.

The state also ordered the company offer restitution to four senior clients, according to the release.

“The settlement order issued today also calls for IPI to retain an independent compliance consultant to review the firm’s policies governing supervision of their Massachusetts-registered financial consultants and the sales of securities to persons over 65 [years old],” according to the release.

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Massachusetts last November charted IPI for using pressure sales contests and “selling unsuitable investment products to senior citizens who were depositors at community banks,” according to a report.

“This case highlights the dangers of aggressive sales culture that leaves older customers exposed to pressure to buy unsuitable investments,” Galvin said in a statement. “This is especially true when the broker-dealer is operating out of a community bank.”