Legal battles in the financial world can be hard to follow. A recent lawsuit between a compliance firm and an asset management company has caught attention. My RIA Lawyer, a compliance service provider, is suing Concorde Investment Services for unpaid fees.
The lawsuit claims Concorde owes $182,172 for compliance services. This case highlights the importance of clear contracts in the financial industry. Our article will break down the key points of this lawsuit and explain why it matters to investors and financial professionals.
Read on to learn more about this legal clash and its potential impact.
Key Takeaways
Table of Contents
- My RIA Lawyer sued Concorde Investment Services for $182,172 in unpaid compliance service fees.
- The lawsuit stems from a contract dispute where Concorde terminated the agreement after five months but refused to pay the remaining balance.
- FINRA fined Concorde $110,000 in November 2024 for failing to properly supervise its representatives’ investment recommendations.
- Concorde faced regulatory action for recommending unsuitable investments, including GPB Capital Holdings, to six customers without proper due diligence.
- This case highlights the importance of clear contracts, prompt payments, and strong compliance systems in the financial services industry.
Background of the Lawsuit
A compliance firm has taken legal action against Concorde Asset Management. My RIA Lawyer filed a lawsuit in state court, claiming Concorde Investment Services failed to pay agreed-upon fees.
My RIA Lawyer sues Concorde Investment Services for unpaid fees
My RIA Lawyer, also known as Shaver Law Group, has filed a lawsuit against Concorde Investment Services. The legal action stems from unpaid fees totaling $182,172. The compliance firm, based in suburban Atlanta, claims Concorde breached their contract by failing to pay for services rendered.
Concorde Investment Services, a mid-sized broker-dealer, faces legal trouble amid this financial dispute. Neither party has responded to requests for comments on the lawsuit. The case highlights the importance of clear fee agreements and prompt payments in the financial services industry.
Legal action often becomes necessary when financial obligations remain unsettled.
Lawsuit filed in state court for breach of contract
My RIA Lawyer took legal action against Concorde Investment Services in November 2024. The firm filed a lawsuit in state court, claiming breach of contract. This legal battle centers on unpaid fees for compliance services.
The court filing alleges that Concorde violated their agreement by not paying for the work done.
The lawsuit brings to light a contract dispute between the two companies. It focuses on fee payments that My RIA Lawyer says Concorde owes them. State courts handle these types of cases, which involve claims of broken promises in business deals.
This case shows how important clear contracts are in the financial services industry.
Details of the Dispute
My RIA Lawyer claims Concorde Investment Services owes unpaid fees for compliance services. The firm filed a lawsuit in state court, alleging Concorde breached their contract by terminating the agreement and refusing to pay the outstanding balance.
My RIA Lawyer’s services and fee agreement with Concorde
My RIA Lawyer provided regulatory and compliance services to Concorde Asset Management starting in May 2024. The two firms agreed on a subscription fee of $17,500 spread over 24 months.
This contract included a clause for hourly billing if Concorde ended the agreement early. From May to September 2024, Concorde paid My RIA Lawyer $87,500 for their services.
The agreement between My RIA Lawyer and Concorde set clear terms for their business relationship. It outlined the scope of services, payment structure, and rules for early termination.
This type of contract is common in the securities compliance industry. The next section will explore why Concorde decided to end this agreement.
Termination of the agreement by Concorde
Following the fee agreement, Concorde Investment Services ended its contract with My RIA Lawyer. This move came after just five months of service, despite reminders about the hourly fee provision.
Concorde cut ties in September 2024, sparking a dispute over the remaining balance.
The contract’s early end led to a legal issue over payment. My RIA Lawyer claims Concorde owes money for work done before the split. Concorde disagrees, refusing to pay the outstanding amount.
This disagreement forms the core of the current lawsuit, with both sides at odds over the financial terms of their dissolved agreement.
Calculation of outstanding balance and refusal of payment by Concorde
After Concorde ended the agreement, My RIA Lawyer tallied up the total charges. They found that Concorde owed $269,672 for services provided. My RIA Lawyer then subtracted the $87,500 Concorde had already paid.
This left an unpaid balance of $182,172. Despite this clear calculation, Concorde has refused to pay the remaining amount.
The dispute centers on this unpaid debt. My RIA Lawyer claims they completed all agreed-upon work and are owed the full amount. Concorde, on the other hand, contests the charges and won’t settle the outstanding invoices.
This disagreement over the unresolved financial obligation has led to the current lawsuit. The court will now have to decide if Concorde must pay the disputed sum or if My RIA Lawyer’s claims are unfounded.
Regulatory Actions Against Concorde
Concorde faced regulatory scrutiny for its business practices. FINRA fined and censured the firm for failing to properly supervise its representatives’ recommendations.
FINRA fine and censure for supervisory failures
FINRA took action against Concorde Investment Services in November 2024. The regulator fined the firm $110,000 and issued a censure for failing to properly oversee its advisors. FINRA found that Concorde didn’t do enough to make sure its advisors were recommending suitable investments to clients.
This lack of oversight led to some risky products being sold without proper checks.
The FINRA penalty highlights the importance of strong compliance systems in financial firms. Proper supervision helps protect investors from unsuitable or overly risky investments.
The next section will explore more details about the specific regulatory actions taken against Concorde.
Unsuitable recommendations involving GPB Capital Holdings
Concorde Investment Services faced trouble for pushing risky investments on clients. FINRA found that Concorde suggested GPB Capital Holdings to six customers without making sure it fit their needs.
GPB Capital Holdings was a high-risk choice that didn’t match these clients’ goals or financial situations. This mistake was part of bigger problems at Concorde, where they didn’t watch their advisors closely enough.
Concorde’s actions put their clients’ money at risk. They failed to do proper research on GPB Capital Holdings before recommending it. This lack of care broke rules about protecting investors and giving sound advice.
As a result, FINRA stepped in to punish Concorde for these failures. The case shows how important it is for firms to carefully check investments before suggesting them to clients.
Conclusion
The lawsuit between My RIA Lawyer and Concorde Investment Services shows the complex nature of financial industry disputes. This case highlights the importance of clear contracts and prompt payment in business relationships.
Regulatory actions against Concorde raise questions about their compliance practices. Firms must stay vigilant to avoid fines and maintain client trust. The outcome of this lawsuit may impact how compliance firms and investment services work together in the future.
