Our law firm is investigating potential claims on behalf of customers of First Securities Internet Network, Inc. (“FISN”), a FINRA brokerage firm, who sustained losses in fixed income or non-CD Products. In April of 2012, FISN entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA after the firm was charged with violating NASD Rule 2210 by using a website that included statements suggesting that FISN and the non-CD products it sold were federally insured, when in fact, they were not. The website also included statements regarding the CDs sold by FISN that were unwarranted and lacked a sound basis in fact. In addition, from March 2009 to November 2010, FISN used a brochure that described some of the products and services offered by FISN in a way that was unwarranted and lacked a sound basis in fact.
According to the AWC, FINRA found that from March 2009 through March 2011, FISN’s website—www.fisn.com—contained information relating to the firm and the products it sold. In particular, the website contained information relating to CDs available for purchase through FISN. The website also contained information relating to fixed-income products such as corporate and government debt securities available from FISN. The firm’s website, however, failed to comply with NASD Rule 2210 in several ways. First, from March 2009 through March 2011, FISN used the name “Federally Insured Savings Network” in connection with its business. That name appeared at the top of most pages of its website and in explanatory text describing FISN’s business. The use of the name “Federally Insured Savings Network,” however, suggested that FISN was itself federally insured and that the products sold by FISN were federally insured when they were not. Second, from March 2009 through June 2010, FISN listed numerous types of fixed income securities in separate tables—such as corporate and government debt securities—under a webpage tab labeled “CD Alternatives.” Referring to the various types of debt securities using the page title of “CD Alternatives,” however, appeared to suggest that these investments had features and risks comparable to the features and risks of CDs when they did not.
Third, from March 2009 until June 2010, FISN’s website stated that “FISN researches certificates of deposit (CDs) from across the nation to find the safest and the highest CD rates.” From June 2010 through March 2011, FISN’s website also stated that “FISN researches certificates of deposit (CDs) from across the nation to find the highest CD rates from safe, FDIC insured institutions.” In addition, the FISN website stated that FISN “researches FDIC insured certificates of deposit (CDs), CD Alternatives and Bonds from across the nation to find the best investment opportunities that meet customer needs for safety and yield” and that the firm “publishes daily the best yields available online at www.fisn.com.” These statements suggested that the rates found and published by FISN were actually the safest and highest rates and best yields available when they may not have been. As such, FISN’s statements were unwarranted and lacked a sound basis in fact. Therefore, according to FINRA, during the period March 2009 through March 2011, FISN violated NASD Rule 2210 and FINRA Rule 2010.
If you purchased fixed income investments from FISN and sustained investment losses, please contact our firm for a free consultation. You may be eligible to file a claim or lawsuit to recover some of your losses.