According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Glen Riesterer (Riesterer), previously associated with Packerland Brokerage Services, INC., has at least one disclosable event. These events include one customer complaint, alleging that Riesterer recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $66,744.00 on August 21, 2023.
[REDACTED] states she and her husband purchased this annuity from Glen Riesterer who was the owner president of Riesterer financial. She states Glen told them they would receive 10% interest for 10 years and when the contract is up they will get a letter and they can come into his office with their daughters to discuss. [REDACTED] states they received statements throughout the ten years with the values changing, however when she asked Glen about the statements he told her they were locked in at the 10% and the statements were computer printouts. [REDACTED] states Glen passed away, so someone else took over. They didn’t receive the letter they were expecting in July, so they contacted the financial professional and Nationwide. She states they were counting on the $195,665 and they weren’t told they could only get it over twenty years. They were planning to take their original $100,000 and the remaining $95,665 they would receive income over 10 years. They didn’t expect it would take them 20 years to get the $195,665 because this would make [REDACTED]almost 100. [REDACTED] states they transferred the funds in the Nationwide account to Athene because they wanted a stable account and a guaranteed return at their ages. The amount transferred was $118,921.74 and since they were expecting the $195,665 they are asking for the additional funds sent to them or payments for the 10-year period on the remaining amount.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Riesterer has been in the securities industry for more than 22 years. Riesterer has been registered as a Broker with Packerland Brokerage Services, INC. since 2002.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. 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.