Community bank B-D fined for selling seniors unsuitable investments

Investment Professionals Inc., a broker-dealer based in San Antonio, Texas, has been ordered by the Massachusetts Securities Division to pay a $100,000 fine for having sold unsuitable investment products to senior citizens.

IPI, whose representatives work on the premises of community banks in Massachusetts, has agreed to offer restitution to the clients, the division said in a release. The firm also will retain an independent compliance consultant to review its policies governing supervision of its financial consultants in the state and its sales of securities to persons over 65. The review also will include IPI’s compliance with Financial Industry Regulatory Authority Inc. rules on networking arrangements, non-cash compensation, and gifts and gratuities.

Last November, the Massachusetts Securities Division charged IPI with using high-pressure sales contests and selling unsuitable investment products to senior citizens who were bank depositors.