We are investigating the sales practices of New York based Max International Broker Dealer Group. The firm was recently censured, fined $335,000 and ordered to pay $482,111.27, plus accrued interest, in restitution to customers. The firm appealed the decision to the NAC but later withdrew its appeal. The sanctions were based on findings that the firm willfully charged fraudulent, excessive, undisclosed markups to customers in connection with the sale of large volumes of penny stocks from its proprietary account.
The findings stated that the firm charged commissions, implying to some of its customers that the commissions represented all of the firm’s profit from the transactions. The findings also stated that the firm failed to record trade details on order tickets and other records, failed to record the terms of the sales accurately, and failed to report the trades as required, which kept customers and regulators from detecting the fraudulent markups. To learn if investment losses at Max International can be recovered, please call us.
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