According to BrokerCheck records financial advisor David Capin (Capin), currently associated with Summit Brokerage Services, Inc. (Summit), has been subject to nine customer complaints and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA) Capin has been accused by customers of unsuitable investment advice, misrepresentations, and excessive trading among other claims.
In February 2017 Capin was permitted to resign from Raymond James Financial Services, Inc. (Raymond James) after he admitted to the firm that he had not discussed trades with certain customers prior to the time orders were entered. This claim appears to concern unauthorized trading.
Two customers have filed claims concerning Capin in 2017 and both have been settled. Another customer filed a claim in 2016 concerning unsuitable investments and that claim was denied by the firm.
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 complaints against Capin 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.
Doyle entered the securities industry in 1985. From June 2009 until January 2012 Capin was associated with Morgan Stanley. From January 2012 until March 2017 Capin was associated with Raymond James. Finally, since March 2017 Capin has been associated with Summit out of the firm’s Kingston, Pennsylvania office location.
At Gana LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.