The law offices of Gana LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments. According to BrokerCheck records, Customers have filed about six complaints with the Financial Industry Regulatory Authority’s (FINRA) against broker John Carolyn (Carolyn), a registered representative with UBS Financial Services Inc. (UBS) out of the firm’s Houston, Texas office location.
Many of the customer complaints against Carolyn allege a number of securities law violations including that the broker made unsuitable investments and overcenoncetrated clients in oil & gas related investments among other claims. The most recent complaint was filed in February 2017 and alleged that from 2014-2016 the customer was unsuitably concentrated in oil and gas investments causing $70,000 in damages. The complaint settled. In another case filed in August 2016 a customer alleged that from 2012-2016 they were unsuitably concentrated in oil and gas investments causing $450,000 in damages. The claim has been settled.
Before recommending investments in oil and gas and commodities related investments, brokers and advisors must ensure that the investment is appropriate for the investor and conduct due diligence on the company in order to understand the risks and prospects of the company. Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. However, brokers who sell oil and gas and commodities products are obligated to understand the risks of these investments and convey them to clients.
The number of complaints against Carolyn are unusual compared to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters. However, studies have found that there are fraud hotspots such as certain parts of California, New York or Florida, where the rates of disclosure can reach 18% or higher. Moreover, according to the New York Times, BrokerCheck may be becoming increasing inaccurate and understate broker misconduct as studies have shown that 96.9% of broker requests to clean their records of complaints are granted.
Carolyn entered the securities industry in 2002. Since 2002 Carolyn has been associated with UBS.
Our firm is investigating potential securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks. Investors who have suffered losses may be able recover their losses through securities arbitration. Our consultations are free of charge and the firm is only compensated if you recover.