Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Dennis Ayre (Ayre), previously associated with Hilltop Securities INC., has at least 13 disclosable events. These events include 11 customer complaints, 2 regulatory events, alleging that Ayre recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on June 12, 2023.
Respondent Ayre failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $300,000.00 on April 07, 2023.
Claimants assert claims of breach of fiduciary duty and negligence relating to concentrated investment in Foresight Energy LP stock. From 9/18/2014 to 5/1/2017.
FINRA BrokerCheck shows a final customer complaint on January 28, 2022.
Without admitting or denying the findings, Ayre consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into the suitability of certain investment recommendations he made to customers while he was registered with FINRA.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,480,902.73 on July 16, 2021.
Claimants assert claims of unsuitability, negligence, negligent and intentional misrepresentation and omission, fraud, control person liability, respondent superior, breach of fiduciary duties, failure to supervise, failure to warn, violations of California securities laws, violation of FINRA Rules, breach of contract, loss of investment opportunity and rescission, relating to purchase and concentration of Foresight Energy, LP stock in the accounts. From 3/1/2014 to 9/30/2019.
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $300,000.00 on December 31, 2020.
Claimants assert claims of breach of fiduciary duty and negligence relating to concentrated investment in Foresight Energy LP stock. From 9/18/2014 to 5/1/2017.
FINRA BrokerCheck shows a settled customer complaint on September 21, 2020.
Suitability, concentration in Foresight Energy, LLC. To\<char_lb_r>\, 2014-2017 ( at Oppenheimer) ; thereafter , at Integrated Advisor Network
FINRA BrokerCheck shows a settled customer complaint with a damage request of $800,000.00 on September 09, 2020.
Investment service suitability, excessive concentration and risk
FINRA BrokerCheck shows a settled customer complaint with a damage request of $784,147.00 on September 02, 2020.
Unsuitable investments
FINRA BrokerCheck shows a settled customer complaint with a damage request of $775,000.00 on August 07, 2020.
Unsuitable recommendations, misrepresentation
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,950,000.00 on May 26, 2020.
CLAIMANTS ASSERT CLAIMS OF FAILURE TO SUPERVISE, BREACH OF FIDUCIARY DUTY, RESPONDEAT SUPERIOR, UNSUITABILITY, BREACH OF CONTRACT, VIOLATIONS OF CALIFORNIA SECURITIES LAWS, VIOLATION OF FINRA RULES, FRAUD AND OTHER COMMON LAW CLAIMS RELATING TO PURCHASES OF CERTAIN STOCKS AND BONDS OF ENERGY COMPANIES, AS WELL AS SEARS COMMON STOCK. FROM 3/1/2014 TO 5/1/2017
FINRA BrokerCheck shows a settled customer complaint with a damage request of $52,058.00 on April 02, 2020.
Excessive risk relative to client stated objective
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,200,000.00 on October 21, 2019.
Unsuitable investments
FINRA BrokerCheck shows a settled customer complaint with a damage request of $11,472,671.00 on October 01, 2019.
Investment advice suitability; excessive risk and strategy deviation
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 a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or 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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail 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.
Ayre has been in the securities industry for more than 9 years. Ayre has been registered as a Broker with Hilltop Securities INC. since 2019.
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.