FINRA has issued a $100,000 fine against PNC Investments, LLC, (“PNCI”) after determining that the firm violated FINRA rules through its failure to enforce supervision systems reasonably calculated to prevent its brokers from misappropriating customer funds.
The regulatory action against PNCI comes after Burim Turkaj, a PNCI financial advisor based in Vero Beach, Florida, misappropriated funds from four customers.
Turkaj opened accounts for two of his customers and used a PNC address as the mailing address for the accounts. Two other clients switched the address on their accounts to Turkaj’s PNC branch, at Turkaj’s instruction. All four of the clients were elderly.
Turkaj deposited $128,000 in checks payable to his elderly customers into the outside bank accounts that he had established under false pretenses. Turkaj misappropriated an additional $362,000.
FINRA permanently barred Turkaj in April 2013 for failing to respond to a request for information.
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