According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Raymond Hart (Hart), previously associated with Usaa Investment Services Company, has at least one disclosable event. These events include one customer complaint, alleging that Hart 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 $250,000.00 on March 25, 2024.
Customer indicates he was sold annuity without appropriate disclosure of the fact that Hart/Abeyta were receiving extra commissions on top of standard commission payout for selling high volume of one particular annuity family. Customer, a senior citizen, indicated high pressure sales tactics were utilized without informing him of downsides of the policy sold. In addition, Customer accuses Hart/Abeyta of both not complying with Colorado Insurance Best Interest regulations and violating SEC Reg. SP during the sale. Customer indicates Abeyta told him he was the principal Advisor but would work with Hart throughout. Customer indicates throughout meetings with Abeyta/Hart he was subject to extreme vision issues as well as inability to concentrated to a recent assault. Customer believes Hart/Abeyta took advantage of his debilitation by utilizing high pressure tactics while in his diminished state. Customer filed complaint with Annuity issuer and was denied based solely upon mutually supporting statements from Abeyta/Hart. Customer also alleges violation of Reg. SP and Colorado Privacy laws in that Abeyta and Hart currently have unauthorized possession of his private client financial data and have shared it with their new advisory firm.
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. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types 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. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended is in the retail investor’s best interest.
Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Hart has been in the securities industry for more than 6 years. Hart has been registered as a Broker with Usaa Investment Services Company since 2020.
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.