Securities Lawyers Blog
According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Kevin Ellman (Ellman) has been the subject of at least four customer complaints and one regulatory action. The customer complaints against Ellman allege in one of the complaints that the broker made misrepresentations related to the sale of auction rate securities. In another complaint, the customer alleged negligence in connection with a mezzanine financing investment. In a third complaint, the customer alleged that Ellman made unsuitable investment recommendations.
Ellman entered the securities industry in 1991. From January 2006 onward Ellman has been registered with NFP Advisor Services, LLC (NFP Advisor).
Advisers have an obligation to deal fairly with investors and that obligation includes making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its costs, benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.
The number of complaints and regulatory actions against Ellman is relatively large by industry standards. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. 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.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases where their broker has acted inappropriately. Our consultations are free of charge and the firm is only compensated if you recover.