More recently, FINRA also disciplined Vanderbilt for failing to properly establish and utilize supervisory systems. Specifically, FINRA found that, although Vanderbilt acknowledged that frequent transactions in the same security could be unsuitable, they did not provide any guidance for detecting or preventing excessive trading or churning. As a result of these and other supervisory deficiencies, Kaplan's trading of his customers' accounts was not prevented, when otherwise it might have been. Vanderbilt has a legal obligation to properly supervise its registered representatives, like Kaplan, and may be legally liable to customers for failing to do so.
Current and former clients of Vanderbilt should carefully review their accounts to ensure that there were not problems. Contact the law firm of Shepherd, Smith, Edwards & Kantas LLP for an evaluation of your account to determine if you might have a claim to attempt to recover some or all of your losses. All communications will be kept strictly confidential, and you will not be billed in any way for a consultation.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions.