Our law firm, Gana LLP, is investigating claims made by Financial Industry Regulatory Authority (FINRA) against broker Alan Rose. The customer complaints allege that Rose engaged in securities law violations, including making unsuitable investments in clients’ accounts. The most recent customer complaint against the broker was filed in January 2017. The customer alleges during the period of 2013 – 2016, Rose over-concentrated their portfolio in unsuitable investments. The alleged damages are worth over $100,000. The case is currently pending.
Another complaint was filed against Rose in May 2015 alleging that the broker made unsuitable recommendations to their account. During the period of November 2011 through January 2013, Rose allegedly misrepresented and recommended unsuitable purchases of Puerto Rico municipal bond funds and New York State bonds. The alleged damages were worth $500,000 and the case was settled at $84,500.
Rose entered the industry in 1983. He is currently employed at Wells Fargo Clearing Services, LLC and has been employed there since January 2013. His previous employment includes: UBS Financial Services (October 2007 – February 2013), Morgan Stanley Inc. (April 2007 – October 2007), and Morgan Stanley DW Inc. (July 1983 – April 2007).
All advisers have a fundamental responsibility to deal fairly with investors, including making suitable investment recommendations. There are three primary brokerage responsibilities outlined by the suitability rule:
• To perform reasonable-basis suitability analysis
The adviser must investigate the investment properties (benefits, risks, tax consequences, and other relevant factors) in order to have a reasonable basis when making recommendations of products or securities suitable to his or her clients.
• To perform customer-specific suitability analysis
The broker must 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.
• To perform quantitative suitability analysis
All brokers and broker-dealers must have a reasonable basis for recommending a series of transactions, even if suitable when viewed in isolation, are not excessive and unsuitable for the customer when taken together in light of the customer’s objectives.
Investors who have suffered investment losses due to unsuitable investment activity by brokers may be able recover their losses through securities arbitration. The attorneys at Gana LLP are experienced in representing investors concerning securities violations in various products including private placement securities. Our consultations are free of charge and the firm is only compensated if you recover.