Princor brokerage agrees to refund $146,000 to local clients
Written on May 6, 2009
The brokerage firm Princor Financial Services has agreed to return $146,000 to eight investors who lost their money after their broker placed them in foreign currency trading accounts.
The broker, Dorian Saunders, consented to an order barring him from the brokerage business last November. Saunders worked at Princor’s Chesterfield office.
According to Secretary of State Robin Carnahan’s office, Saunders persuaded his clients to cash in other investments and open accounts with a currency trading firm run by his brother. The clients lost all their money, the state regulator said.
According to the secretary of state’s office, Princor knew that Saunders and one of his clients was involved in currency trading outside of Princor. Such "selling away" — trading outside the firm’s books — is considered an unethical practice under Missouri law, the secretary of state’s office says 1000 cash advance.
Princor said it ended its relationship with the broker before learning the extent of the currency accounts.
The company said it believes that only eight customers were involved. "We take our business and ethical obligations seriously and have taken steps to improve our processes to reduce the risks of a similar situation in the future," Princor said in a statement.
jgallagher@post-dispatch.com > 314-340-8390
Filed in: finance.