National investment loss lawyers KlaymanToskes continues investigating Webull Financial, LLC in connection with the firm’s censure and $3 million fine by the Financial Industry Regulatory Authority (“FINRA”), following Webull’s alleged failure to exercise due diligence regarding options trading in customer accounts.
Investors that suffered losses of at least $100,000 are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we obtain a financial recovery for you.
Webull Financial, LLC, entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA’s Department of Enforcement on March 9th, 2023, which disclosed that the firm was censured and fined $3,000,000. FINRA found that Webull failed to exercise reasonable due diligence related to options trading in customer accounts and also failed to establish and maintain a supervisory system in compliance with FINRA rules.
According to the AWC, Webull’s automated system to approve customers for options trading allegedly only considered information that the customer provided in his/her most recent options suitability questionnaire, and failed to consider information previously provided to the firm.
Webull reportedly approved “more than 2,500 customers under the age of 21 to trade options spreads” despite the firm’s requirement that “customers seeking approval to trade options spreads (a privilege granted only to customers approved for ‘level 3’ options trading authority) have at least three years of options trading experience.”
In addition to the firm’s failure to supervise options trading, the AWC alleges that from May 2018 to December 2021, Webull’s system for identifying and responding to customer complaints was “not reasonably designed to identify and respond to the volume of customer complaints received.”
FINRA found that in 2020 Webull reported “a total of only 69 written customer complaints despite receiving over 500,000 written customer communications that year.” In December 2020, the firm reportedly received more than 88,000 written customer communications, but only 15 were escalated for review as potential customer complaints.
Investors that suffer investment losses as a result of their firm violating securities rules and regulations may hold their broker/advisor and brokerage firm responsible for their losses through FINRA arbitration.
Former and current customers of Webull Financial who suffered investment losses of $100k or more are encouraged to contact KlaymanToskes immediately to discuss recovery options at 888-997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss legal options. Every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com