Broker Investigation: Customer Complaints Against Broker Daniel McPherson

shutterstock_143094109The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Daniel McPherson (McPherson). According to BrokerCheck records McPherson is subject to two customer complaints. The customer complaints against McPherson allege securities law violations that including unsuitable investments, misrepresentations, and breach of fiduciary duty among other claims.   The claims appear to relate to allegations regard direct participation products and limited partnerships such as equipment leasing and non-traded real estate investment trusts (Non-Traded REITs). Other products complained of include oil and gas private placements and tenant-in–common (TIC) investments.

Our firm has written numerous times about investor losses in these types of programs and private placement securities. All of these investments come with costs that make profiting from the investment extremely unlikely. For example, investors are destined to lose money in equipment leasing programs like LEAF Equipment Leasing Income Funds I-IV and ICON Leasing Funds Eleven and Twelve. The high costs and fees associated with these investments make significant returns virtual impossibility. Yet for all of their costs investors are in no way compensated for the additional risks of these products.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

The number of events listed on McPherson brokercheck is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.

Keyes entered the securities industry in 2005. From June 2006 until January 2011, McPherson was associated with Sammons Securities Company, LLC. From January 2011 until February 2012, McPherson was associated with Pacific West Securities, Inc. Finally, since February 2012 McPherson has been registered with Cetera Advisors LLC out of the firm’s Idaho Falls, Idaho office location.

The investment fraud attorneys at Gana LLP represent investors who have suffered securities losses due to the mishandling of their accounts. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.