Adviser Suspended 5 Years for Overcharging Clients

Oct 17

Texas Securities Commissioner John Morgan entered a Disciplinary Order on Oct. 14 that suspended Jens Pinkernell, an investment adviser representative, for five years.

As part of the order, Pinkernell repaid $46,915 to two clients who were charged unauthorized and excessive fees by Pinkernell and J. Pinkernell Global Wealth LLC. Both clients received the full amount they were overcharged.

The order also suspended the investment adviser registration of Pinkernell Global Wealth for five years. The firm is based in Gunter, 50 miles north of Dallas.

The order found that Pinkernell Global Wealth overcharged two clients for investment advisory services. In one instance, a client agreed to pay the firm 1.35% of the assets Pinkernell managed. Under a separate fee arrangement with Pinkernell and a third-party custodian of the client’s funds, Pinkernell could withdraw $3,000 a month from the client’s account.

From May 2013 to April 2016, Pinkernell made unauthorized monthly withdrawals from the client’s account. The client ultimately paid $19,134 in fees, when the amount due was $1,850.

Pinkernell withdrew excessive funds from a second client’s account from July 2013 to March 2016. The client should have paid $8,803 in fees, but Pinkernell withdrew a total of $38,436.