Securities Lawyers Blog
According to BrokerCheck records financial advisor Lewis Robinson (Robinson), currently associated with BB&T Securities, LLC (BB&T), has been subject to 10 customer complaints, one regulatory action, and one employment separation for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA) Robinson has been accused by customers of unsuitable investment advice among other claims.
In August 2017, FINRA found that Robinson settled a customer’s complaint by issuing three checks in the total amount of $12,203.23 to the customer’s wife without the knowledge of his brokerage firm. FINRA determined that the customer complained on three separate occasions about the amount of commissions that he charged.
In August 2015, Morgan Stanley terminated Robinson for providing unapproved fee reimbursements to a client.
The most recent customer complaint against Robinson was filed in July 2016 and alleged unsuitable investments between 2013 and 2016 causing $104,000 in damages. The claim was settled for $29,060.
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 Robinson 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.
Robinson entered the securities industry in 1987. From December 2009 until October 2015 Robinson was associated with Morgan Stanley. Currently, Robinson is registered with BB&T out of the firm’s Aventura, Florida office location.
At Gana Weinstein 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.