Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Perkins (Perkins), currently associated with Hatteras Capital Distributors, LLC, has at least 6 disclosable events. These events include 6 customer complaints, alleging that Perkins recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint on May 20, 2025.
Plaintiffs bring this Verified Amended Class Action Complaint against Defendants for tortious interference with contractual and unitholder voting rights stemming from the Hatteras Plan of Liquidation.
FINRA BrokerCheck shows a pending customer complaint on May 20, 2025.
Nature of claim(s) asserted: This is a derivative complaint asserting breaches of fiduciary duty, unjust enrichment, and aiding and abetting breach of fiduciary duty, and related claims.
FINRA BrokerCheck shows a pending customer complaint on May 02, 2025.
Causes of action: Breach of Fiduciary Duty-Loyalty, Breach of Fiduciary Duty-Care, Breach of Contract-Failure to Manage the Fund in Good Faith, Breach of Contract-Failure to Provide Access to Books and Record, Fraud
FINRA BrokerCheck shows a pending customer complaint on December 16, 2024.
Derivative action for breach of fiduciary duties
FINRA BrokerCheck shows a pending customer complaint on December 12, 2024.
Nature of claim(s) asserted: This is an action seeking to enforce the rights of equity holders in connection with alleged breaches of fiduciary duty, breaches of contract, unjust enrichment, fraud, and aiding and abetting breach of fiduciary duty, and related claims against directors and officers and related parties.
FINRA BrokerCheck shows a pending customer complaint on September 04, 2024.
Derivative action for breach of fiduciary duties
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. 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. 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.
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. 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. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest. Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Perkins entered the securities industry in 1988. Perkins has been registered as a Broker with Hatteras Capital Distributors, LLC since 2007.
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.