Wrong Phone Number Causes Brokers To End Up In Hot Water

Now this is what you call a wrong number!

The Investment News reported that brokers from independent broker-dealers Financial Network Investment Corporation and Meyers Associates erroneously made “cold calls” to the Missouri Securities Division office. A broker for the Financial Network Investment Corporation pitched Nuveen Multi-Strategy Income & Growth Fund 2 to a state investigator telling them “they could expect a 20% to 25% return during a six to eight month period.” To make matters worse the broker was not even registered to sell securities in Missouri.

Another broker from Meyers Associates called the same office and pitched shares of Nuance Communications Inc., discussing a rise in price due to a possible acquisition by Apple, Inc. and pressuring for an immediate decision. Later, yet another broker called stating that Nuance was the “Bentley” of stocks and was “money in the bank”, according to the Missouri allegations. That broker was likewise not registered to sell securities in Missouri, according to the action. Cease and desist orders have been filed against both firms.

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