Securities Lawyers Blog
According to broker Adamson Wright’s (Wright) Financial Industry Regulatory Authority (FINRA) BrokerCheck records the representative was recently sanctioned concerning allegations that from May 2010 through February 2011, he effected approximately 249 mismarked order tickets as being “unsolicited” orders when the trades were “solicited” causing the firm to maintain inaccurate books and records.
Respondent Wright entered the securities industry in 1995 with UBS Financial Services Inc. until January 2010. In January 2010, Wright became registered with Ameriprise Financial Services, Inc. (Ameriprise) and then was terminated from Ameriprise in June 2011. In July 2011, Wright became registered with InterCarolina Financial Services Inc.
In addition, at least five customer complaints have been filed against Wright alleging unsuitable investments and unauthorized discretionary trading. These complaints include allegations involving unsuitable options trading. Two clients alleged an unsuitable purchase of China Agritech (CAGC). The number of complaints made by investors against Wright is relatively large by industry standards. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Far fewer brokers have multiple customer complaints approaching the number of complaints made against Wright. Brokers must disclose different types of events, not necessarily all of which are customer complaints. These disclosures can include IRS tax liens, judgments, and even criminal matters.
FINRA alleged that from approximately May 2010, through February 2011, Wright marked a total of 249 order tickets in three customers’ accounts as “unsolicited” when Wright had actually solicited the orders by bringing the security or transaction to the attention of the customer. FINRA found that the mismarked order tickets involved options and uncovered option trades. FINRA alleged that Wright mismarked the order tickets in order to circumvent Ameriprise’s policies and procedures that prohibited the firm’s brokers from soliciting uncovered option trades. By mismarking order tickets, FINRA found that Wright caused Ameriprise’s books and records to be inaccurate.
The attorneys at Gana Weinstein LLP represent investors in securities arbitration matters concerning a variety of investment related claims, including unsuitable investments. Our consultations are free of charge and the firm is only compensated if you recover.