Concorde Investment Services

Kurta Law is investigating investment recommendations by brokers from Concorde Investment Services (CRD#: 151604). The brokerage firm has headquarters in Ann Arbor, Michigan. Concorde Investment Services is affiliated with investment advisory firm Concorde Asset Management.

Fees and Conflicts of Interest

Broker-dealers are required to provide investors with a Customer Relationship Summary (Form CRS) that disclose the fees you can expect to pay. Concorde Investment Services discloses the following in its Form CRS:

• You’ll be charged fees when you open your account and on each trade. Some investments charge higher commissions, incentivizing Concorde Investment Services to recommend these products.
• Mutual funds and variable annuities also come with additional fees. The firm is incentivized to encourage you to invest in higher-cost share classes of mutual funds and other products.
• Concorde Investment Services receives compensation from third parties for products relating to certain products offered by the firm.
• The firm also holds revenue sharing agreements with certain custodians that incentivize it to recommend those custodians.
• Concorde Investment Services may also receive additional compensation for its relationships with the issuers of securities.

Broker-Dealer Services

Besides stocks and bonds, Concorde Investment Services also offers the following investment vehicles. These investment products may be unsuitable for some retail investors due to their risks:

• Mutual funds
• Variable annuities
• Variable insurance products

Regulatory Actions

Concorde Investment Services has been censured and fined by FINRA multiple times, according to the regulatory history disclosed on the firm’s detailed BrokerCheck page.

Alleged Failure to Supervise Recommendations

On November 4, 2024, Concorde Investment Services consented to the entry of findings that it allegedly failed to reasonably supervise broker recommendations of alternative investments offered by GPB Capital Holdings from 2015-2018.

According to a Letter of Acceptance, Waiver & Consent (AWC), GPB Capital Holdings allegedly described these investments as illiquid and intended for sophisticated investors. However, brokers from Concorde Investment Services allegedly made unsuitable recommendations of these investments to six investors with conservative or moderate risk tolerances.

The firm consented to a FINRA censure, a $110,000 fine, and partial restitution of $20,382.39, plus interest. You can read the AWC here.

Alleged Violation of Securities Act of 1933

In an AWC filed on July 27, 2023, Concorde Investment Services consented to the entry of findings that it allegedly violated Section 5 of the Securities Act of 1933 by selling three private placement offerings exempt from registration under Regulation D without first establishing substantive relationships with 45 of its prospective investors.

Securities may be exempt from registration under Section 5 of the Securities Act of 1933, and Rule 506(b) of Regulation D defines the conditions that private offerings must meet to qualify for exemption.

Under this rule, private offerings cannot be marketed through general solicitation. Instead, a firm must have a pre-existing, substantive relationship with the investors it solicits for an unregistered private offering.

The AWC further alleged that Concorde Investment Services failed to establish a system of supervision reasonably designed to achieve compliance with the Securities Act of 1933 and FINRA rules concerning general solicitations.

Concorde Investment Services consented to a censure, $175,000 fine, and disgorgement of $58,278 in commissions received, plus interest. The firm also consented to undertake a remediation of the issues alleged in the AWC. You can read the AWC here.

Alleged Failure to Supervise Brokers

An AWC filed on July 21, 2020, alleged that Concorde Investment Services failed to reasonably supervise a broker who allowed her husband to conduct securities business with firm clients while serving suspension by FINRA.

The AWC further alleged that Concorde Investment Services later hired the broker’s husband, and failed to reasonably supervise his conduct. The firm allegedly failed to identify his unsuitable recommendations of private placements and structured products.

Concorde Investment Services consented to a censure, $300,000 fine, and restitution to a customer in the amount of $76,344.20 plus interest. You can access the AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of the following brokers currently or formerly associated with Concorde Investment Services who have allegations of misconduct on their records. Contact a securities attorney if you have concerns about your broker’s conduct.

• Jason Lowther: https://www.kurtalawfirm.com/blog/jason-lowther/ 
• Bart Harrison: https://www.kurtalawfirm.com/blog/bart-harrison/ 
• Daniel Raupp: https://www.kurtalawfirm.com/blog/daniel-raupp/ 

Kurta Law Can Help

Investors who lost money working with a Concorde Investment Services broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.