Jens Pinkernell, a Dallas, Texas-based investment adviser, has been suspended for five years. According to the disciplinary action entered by Texas Securities Commissioner John Morgan, Pinkernell and J. Pinkernell Global Wealth LLC charged two clients excessive and unauthorized fees. Both have since been repaid the $46,915 they were collectively overcharged.
The order also suspends the firm’s investment adviser registration. According to the state, J. Pinkernell Global Wealth overcharged the clients for advisory services.
One client agreed to pay the firm 1.35% of the assets it managed. The client also had a separate fee deal with Pinkernell and a third-party custodian. This arrangement allowed Pinkernell to take out $3K/monthly from the client’s account.
The Disciplinary Order states that from 5/2013 to 4/2016, the Dallas investment advisor made monthly withdrawals that the client never authorized. As a result, the client paid over $10K in fees rather than $1,850.
With the second client, Pinkernell is accused of taking out excessive fees from that party’s account from 7/2013 to 3/2016. As a result, claims the state, the client paid over $38K in fees instead of just over $8,800. This client had no agreement with Pinkernell. Instead, he charged the client yearly asset management fee of 2%.
Pinkernell is the only employee of his firm.
In another recent Texas securities case, Old Security Financial Group Inc. has been ordered to pay a $100K fine. The Spring, Texas firm is accused of selling unregistered investments in a mortgage note program. This program was supposed to be backed by real estate.
Old Security president/owner Donald Anthony MacKenzie and VP Robert S. Davis Jr. are charged with violating the Texas Securities Act because they offered these investments even though they were not registered as agents and dealers. Also, Old Security is not registered in Texas to sell securities. This is not the first time MacKenzie has received federal and state sanctions for securities violations, including for selling unregistered securities.