Questar Capital Corp. (“Questar Capital”) (CRD# 43100) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Questar Capital, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Questar Capital, you should strongly consider hiring an investment fraud lawyer . You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A. , offers free consultations. Give us a call at 800-732-2889 . Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Questar Capital?
If you’ve lost money caused by Questar Capital and/or its employees’ misconduct then the answer is, YES, you can sue Questar Capital but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Questar Capital in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Questar Capital is to call Attorney Pearce at our office at 800-732-2889 .
What is Questar Capital?
Questar Capital (CRD# 43100) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Questar Capital is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Questar Capital Has Many Different Regulatory Problems
Questar Capital’ rapid growth has not been without consequences. There have been approximately 8 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Questar Capital for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Questar Capital is a repeat offender: there are over 8 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Questar Capital Has Faced Over the Years*
Questar Capital has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Unfair Mutual Fund Sales Practices Lead to $796,892 Fine
Brief overview: The firm disadvantaged eligible retirement plan and charitable organization customers by selling them higher-cost shares and failing to apply sales-charge waivers. This resulted in customers paying higher fees than necessary. The firm also lacked adequate policies and training for financial advisors regarding sales-charge waivers, leading to the overcharging of eligible customers. As a result, the firm was censured and required to develop a remediation plan, including restitution to eligible customers, resulting in a fine of $796,892.
Failure to Maintain Electronic Brokerage Records Results in $150,000 Fine
Brief overview: The firm failed to store a significant number of essential electronic brokerage records in a non-alterable format, violating regulations intended to preserve the integrity of broker-dealer records. The firm consented to the findings without admitting or denying the allegations and was censured, receiving a fine of $150,000.
Inadequate Supervision of Consolidated Reports and Email Correspondence Leads to $125,000 Fine
Brief overview: The firm failed to establish and maintain sufficient supervisory systems for consolidated reports and the review of certain home office email correspondence. Registered representatives were allowed to create consolidated reports using a system that permitted manual entries, including assets held away from the firm. Consequently, the firm was censured and fined $125,000.
Agent’s Misconduct and Misuse of Client Funds Costs Questar Capital Corporation $235,000
Brief overview: Questar Capital Corporation failed to supervise an agent who sold fraudulent securities to both Questar and non-Questar clients, utilizing their funds for personal and business expenses. This misconduct violated the Pennsylvania Securities Act of 1972. In response, Questar Capital Corporation paid a $200,000 administrative assessment and $35,000 in investigative and legal costs, amounting to a total fine of $235,000.
Failure to Supervise and Misrepresentation as Investment Adviser Results in $6,250 Fine
Brief overview: The firm inadequately supervised a registered representative, allowing them to engage in activities beyond their authorized role and hold themselves out as a registered investment adviser representative. As a consequence, the firm faced a monetary fine of $6,250 for their failure to properly supervise the representative and prevent misrepresentation.
Unregistered Agent Misrepresentation and Oversight Failure Costs Questar Capital Corporation $54,668.53
Brief overview: Agent Thomas Gorter allegedly falsely presented himself as an investment adviser representative for approximately three years while not being registered as one. Questar Capital Corporation approved advertising and business cards that perpetuated this misrepresentation, failing to detect and rectify the situation during several audits. Consequently, Questar Capital Corporation received a monetary fine of $54,668.53 for their oversight failure and allowing unregistered agent misrepresentation.
*Above are only some of the regulatory disciplinary actions filed against Questar Capital by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 138 BrokerCheck disclosures.
Questar Capital Customer Complaints
There have been scores of customer complaints filed against Questar Capital stockbrokers and investment advisors over the years. We have launched many investigations of current and former Questar Capital advisors:
- Miaojun Yuan of Woodbury Financial Services, Inc.
- Louis Olave of Lincoln Investment
- Richard Riggenbach of Woodbury Financial Services
- Anthony Abrams formerly with Woodbury Financial Services, Inc.
- Alex Yoo of Woodbury Financial Services
- Joseph Cucinotta of Woodbury Financial Services
- Frank Calise of Securities America, Inc.
- James Bukowsky of First Heartland Capital, Inc.
- Jonathan Malone of Centaurus Financial, Inc.
- William Slepcevich of Woodbury Financial Services, Inc.
If you have lost money investing with any of these Questar Capital advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Questar Capital Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Questar Capital Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Questar Capital is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Questar Capital without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By Questar Capital Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Questar Capital cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889 . Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.