Broker Duane Pellman in Intercarolina Financial Services, INC. Firm Has Customer Complaint

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Duane Pellman (Pellman), previously associated with Intercarolina Financial Services, INC., has at least 10 disclosable events. These events include 10 customer complaints, alleging that Pellman 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 $90,000.00 on June 20, 2024.

Claimant alleges Mr. Pellman implemented speculative and risky investment products in the claimants accounts that violated their outlined suitability guidelines and resulted in substantial financial harm. Claimant views Mr. Pellman’s actions and investment recommendations as a blatant violation of Mr. Pellman’s fiduciary duty. Time Period of May 2019 to February 2023.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $78,235.00 on February 28, 2024.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $500,000.00 on November 08, 2023.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $372,000.00 on November 06, 2023.

The client alleges that in contradiction to Claimant’s risk tolerances and investment objectives, Mr. Pellman engaged in high risk, speculative, and leveraged trading in Claimant’s accounts. Claimant alleges the trading conducted by Mr. Pellman in the Claimant’s accounts was grossly unsuitable for any investor saving for retirement. Time period May 2019 to November 2022.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $215,000.00 on November 06, 2023.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $118,000.00 on November 02, 2023.

The client alleges that for the time period of March 2021 to March 2023, in contradiction to Claimant’s risk tolerances and investment objectives, Mr. Pellman engaged in high risk, speculative, and leveraged trading in Claimant’s account. Claimant alleges Mr. Pellman traded Claimant’s accounts in an egregious manner and in violation of the fiduciary duty owed to them.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $77,000.00 on November 02, 2023.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on October 11, 2023.

The client alleges that in contradiction to Claimant’s risk tolerance and investment objectives, Mr. Pellman engaged in high risk, speculative, and leveraged trading in Claimant’s accounts for the time period of April 2019 to October 2023. Mr. Pellman traded the Claimant’s accounts in an egregious manner and in violation of the fiduciary duty owed to Claimant.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $270,000.00 on September 13, 2023.

The client alleges that for the time period September 2019 to August 2023, Claimant alleges the trading conducted in their accounts was grossly unsuitable for any investor saving for retirement. In contradiction to Claimants risk tolerance and investment objectives, Mr. Pellman engaged in high risk, speculative, and leveraged training in the Claimants accounts.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $515,000.00 on May 12, 2023.

The client alleges that during the time period of April 2019 to December 2022, Mr. Pellman engaged in extraordinarily risky trading in Claimant’s accounts which resulted in the loss of significant amounts of money in Claimants retirement accounts. Claimant also alleges that Mr. Pellman committed fraud by lying to Claimant about the value of their account.

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.

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.

Pellman has been in the securities industry for more than 7 years. Pellman has been registered as a Broker with Intercarolina Financial Services, INC. since 2016.

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.