Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Craig Mcdaniel (Mcdaniel), currently associated with Capital Investment Group, INC., has at least 4 disclosable events. These events include 4 customer complaints, alleging that Mcdaniel recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $42,000.00 on April 26, 2024.
Client invested in GWG Holdings L-Bonds. GWG Holdings, Inc. filed Chapter 11 bankruptcy on April 20, 2022. No Statement of Claim filed by client or opposing counsel.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $25,000.00 on February 15, 2024.
GWG Holdings, Inc. filed Chapter 11 bankruptcy on April 20, 2022. No Statement of Claim filed by client or opposing counsel.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $25,000.00 on February 09, 2024.
GWG Holdings, Inc. filed Chapter 11 bankruptcy on April 20, 2022. No Statement of Claim filed by client or opposing counsel.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $150,000.00 on July 25, 2023.
Relative to two individual purchases of GWG Holdings, Inc., with two separate registered representatives of Capital Investment Group, Inc., the clients claim violations of North Carolina Securities Act, negligence, breach of fiduciary duty, breach of contract, and respondeat superior. Mr. McDaniel was the representative on a purchase of $50,000 of the security.
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.
Mcdaniel entered the securities industry in 1983. Mcdaniel has been registered as a Broker with Capital Investment Group, INC. since 2004.
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.