Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, Sutter Securities, Inc. (CRD # 30770) was recently the subject of a complaint brought by FINRA’s Department of Enforcement. The complaint was filed after an investigation into Reg BI violation, stemming from excessive trading (churning) in the account of an 89-year-old customer.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Sutter Securities, Inc.
Registration Background for Sutter International Securities, Inc.
Sutter Securities, Inc. has been a member firm of FINRA since 1992. It is a full-service broker-dealer headquartered in Irvine, CA. It has approximately 34 registered representatives operating out of three branch offices.
FINRA’s Allegations Against Sutter International Securities, Inc.
According to the FINRA Complaint under Disciplinary Proceeding No. 2021071987902 dated January 20, 2026, Sutter Securities, Inc. is alleged to have engaged in the following conduct by FINRA’s Department of Enforcement:
- “Between March 2020 and July 2021 …, Respondent Sutter Securities Inc. (Sutter), acting through a former Sutter registered representative (Representative 1), recommended and effected 2,217 trades in two accounts belonging to a retired, 89-year-old customer (Customer 1)”;
- “Those trades caused the customer to pay staggering and ruinous trading costs—in excess of $2.9 million”;
- “In addition, throughout the life of Customer 1’s account, Sutter and Respondent Keith Charles Moore—a part owner of the firm who served as its Chief Executive Officer and Representative 1’s direct supervisor—failed to identify, or reasonably respond to red flags of potentially excessive trading in Customer 1’s accounts, including: (i) extraordinarily large trading volumes and realized losses; (ii) cost-to-equity ratios over 20 percent; (iii) turnover rates greater than six; (iv) a pattern of frequent in-and-out trading; and (v) persistent use of margin”;
- “During the relevant period, Sutter failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 and, as of June 30, 2020, Reg BI’s Care Obligation regarding excessive trading. Sutter’s WSPs failed to provide reasonable guidance regarding how to detect, and respond to potentially excessive trading, and the firm in fact failed to implement reasonable supervisory practices to achieve these objectives”; and
- By virtue of its actions, Sutter Securities, Inc. violated FINRA Rule 2111, regarding suitability, Exchange Act Rule 15l-1 (Reg BI), regarding acting in the best interest of a customer, FINRA Rule 3110 regarding supervision, and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
Sutter Securities, Inc. Has A History of Securities Industry Customer Complaints and/or Regulatory Actions
In addition to the disciplinary proceedings brought by FINRA’s Department of Enforcement, FINRA BrokerCheck for Sutter Securities, Inc. reveals it has a prior history of customer complaints and/or regulatory actions against it, including but not necessarily limited to the following:
- On August 10, 2000, the firm entered into an AWC with the National Association of Securities Dealers (NASD). In the AWC, Sutter consented to a finding it participated in ten negotiated underwritings and failed to timely file Form G-37 with the Municipal Securities Rule Making Board (MSRB) disclosing those underwritings. Sutter additionally consented to the sanctions of a being censured and fined in the amount of $250.00.
Have You Lost Money?
If you or someone you know has or had a brokerage account with Sutter Securities, Inc. and have concerns regarding losses in your investments or possible sales practice violations including fraud or negligence, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
