Banc One Securities Corp. Complaint & Legal Claims Center

Do you have a claim against Banc One Securities?

Important Information You Should Know:

Banc One Securities is a securities brokerage firm which is licensed by FINRA.
Firms licensed through the Financial Industry Regulatory Authority, formerly the National Association of Securities Dealers (NASD), must comply with securities regulations and federal and state securities laws. When these firms violate regulations or laws they can face actions by regulators or by federal or state criminal prosecutors.

Very few “securities police” have the impossible duty to attempt to govern billions of dollars in transactions each year, handled by hundreds of thousands of salespersons nationwide at thousands of securities firms. Approximately 660,000 registered salespersons at 5,300 securities firms handle hundreds of millions of transactions annually for over 60 million investors. It is impossible for securities regulators to police this activity.

Securities regulators and officials do not often recover losses for victims of securities fraud. Just as police give tickets and motorists usually hire attorneys to recover damages, victims of securities fraud hire attorneys to recover their losses. As well, claims against brokerage firms including Banc One Securities, can be for securities fraud, or for breach of duty, breach of contract, negligence and other claims not covered by securities regulations or statutes.

Claims against brokerage firms are almost always determined in securities arbitration.
When an account is opened at securities firms including Banc One Securities, investors sign documents which include agreements to arbitrate any dispute. The U.S. Supreme Court decided in 1987 that securities arbitration agreements are enforceable. Arbitration is a private proceeding which takes the place of court actions. Appeals of arbitration decisions to court are very limited and usually unsuccessful.

Investors represented by an attorney in securities arbitration are much more successful. Statistics prove that investors who file claims with the assistance of an attorney recover twice as often as those not represented. Only a small percentage of lawyers have ever represented an investor in arbitration and very few law firms nationwide have extensive experience with securities arbitration cases.

To learn whether you can recover losses through a claim against Banc One Securities
Contact Shepherd Smith Edwards & Kantas LTD LLP law firm for a free consultation with an attorney.

About Shepherd Smith Edwards & Kantas LTD LLP Law Firm:

Our law firm represents institutional and individual investors nationwide who have lost a substantial portion of their retirement or other assets. Our attorneys and staff have more than 100 years of combined experience in the securities industry and in securities law. Several of our lawyers and staff members served for years as a Vice President or Compliance Officer of major brokerage firms.

Each lawyer and staff person at our firm is devoted to assisting investors to recover losses caused by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. We have handled thousands of cases against hundreds of large and small investment firms, including claims against firms such as Banc One Securities.

Additional Information

Reporting Source: Regulator
Allegations: SECTION 17(A) OF THE SECURITIES EXCHANGE ACT AND RULE 17A-3
THEREUNDER, NASD CONDUCT RULES 3010, 3110 AND 2110 – FROM
NOVEMBER 1, 2002 THROUGH NOVEMBER 11, 2003 (THE “RELEVANT
PERIOD”), BANC ONE SECURITIES CORPORATION (THE “FIRM”) FAILED TO
ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM AND WRITTEN
PROCEDURES REASONABLY DESIGNED TO PREVENT LATE TRADING IN
MUTUAL FUND TRANSACTIONS. DURING THE RELEVANT PERIOD, 5400
MUTUAL FUND ORDERS WERE PROCESSED AFTER THE MARKET CLOSE
ANT THE CURRENT DAY’S NET ASSET VALUE ("NAV"), WHEN EITHER THE
AVAILABLE EVIDENCE WAS INCONCLUSIVE AS TO WHETHER THE ORDER
WAS RECEIVED AFTER THE CLOSE OF THE MARKET. THESE ORDERS
REPRESENTED 1.75% OF THE APPROXIMATELY 306,000 NON-SYSTEMATIC
MUTUAL FUND ORDERS HANDLED BY THE FIRM. THE FIRM’S SYSTEM AND
PROCEDURES WERE DEFICIENT IN CERTAIN RESPECTS IN THAT THEY PROVIDED OPPORTUNITIES FOR CUSTOMERS TO PLACE ORDERS AFTER
THE CLOSE OF THE MARKET AND STILL RECEIVE THE CURRENT DAY’S
NAV. THE FIRM’S WRITTEN SUPERVISORY PROCEDURES FAILED TO
INFORM IT’S REGISTERED REPRESENTATIVES THAT ENTERING
CUSTOMERS ORDERS FOR THE SAME DAY NAV AFTER 4:00PM WAS
PROHIBITED AND FAILED TO DETECT AND PREVENT ANY TRADES THAT
WERE ENTERED AFTER 4:00PM THAT RECEIVED THE CURRENT DAY’S
NAV. AS A RESULT, THE FIRM’S SUPERVISORY PROCEDURES WERE NOT
REASONABLY DESIGNED TO PREVENT LATE TRADES. ADDITIONALLY,
FROM MAY 2, 2003 THROUGH NOVEMBER 11, 2003, THE FIRM FAILED TO
RECORD ORDER RECEIPT TIMES IN ACCORDANCE WITH SECTION 17(A)
OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-3
THEREUNDER AND NASD CONDUCT RULE 3110, AND FAILED TO
ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM AND WRITTEN
PROCEDURES REASONABLY DESIGNED TO ENSURE THAT THE FIRM
CORRECTLY RECORDED MUTUAL FUND ORDER RECEIPT TIMES.
Date Initiated: 01/12/2005
Resolution Date: 01/12/2005
Sanctions Ordered: Censure
Monetary/Fine $400,000.00
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BANC ONE
SECURITIES CORPORATION CONSENTED TO THE DESCRIBED SANCTIONS
AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINE $400,000.

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