Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating a customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against William Byrd (Byrd) alleging unsuitable investments, negligence, and breach of fiduciary duty among other claims. According to brokercheck records Byrd has been subject to three customer complaints.
A customer complaint filed in June 2016 alleging that the broker made unsuitable recommendations, misrepresented investments and breached his fiduciary duty causing damages in the amount of $65,000. The claim is currently pending.
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.
Byrd entered the securities industry in 1985. From 2001 through March 2016, Byrd was registered with TransAmerica Financial Advisors, Inc. From March 2016 through July 2016, Byrd was associated with Invest Financial Corporation. Finally, since September 2016 Byrd has been associated with Capital Financial Services, Inc. out of the firm’s Tampa, Florida office location.
The number of events listed on Byrd 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.
The investment fraud attorneys at Gana Weinstein 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.