Woodbury Financial Accepts $100,000 Fine Over UITs

By December 7, 2015 September 20th, 2017 News

Woodbury Financial Services, Inc., with a principal place of business in Oakdale, Minnesota, has accepted a fine and censure from FINRA, and has agreed to payment of restitution to customers relating to the sale of Unit Investment Trusts (“UITs”).

According to the Letter of Acceptance, Waiver and Consent (“AWC”) between Woodbury and FINRA, “From May 1, 2009 to April 30, 2014, the Firm failed to apply sales charge discounts to certain customers’ eligible purchases of unit investment trusts (“UITs”). . . . In addition, the Firm failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that customers received” the discounts.

As detailed in the AWC, a “UIT is a type of Investment Company that issues securities, typically called ‘units,’ representing undivided interests in a relatively fixed portfolio of securities. UITs are generally issued by a sponsor that assembles the UIT’s portfolio of securities, deposits the securities in a trust, and sells units of the UIT in a public offering. UIT units are redeemable securities that are issued for a specific term, and entitle an investor to receive his or her proportionate share of the UIT’s net assets on redemption or at termination.”

Woodbury will pay a $100,000 fine and will pay restitution of $98,937.31 to affected customers.

Fishman Haygood represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.

If course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood lawyer today.

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