Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker James Dunn (Dunn), previously associated with Ameriprise Financial Services, LLC, has at least 17 disclosable events. These events include 16 customer complaints, one regulatory event, alleging that Dunn recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on August 17, 2022.
Without admitting or denying the findings, Dunn consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA. The findings stated that this matter originated from FINRA’s review of a Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Dunn’s member firm disclosing that he had voluntarily resigned while under review for potential violation of company policy related to suitability, unauthorized trades and texting with clients.
FINRA BrokerCheck shows a settled customer complaint on March 28, 2022.
Claimants allege that former advisor Dunn overconcentrated their accounts in Chinese educational stocks without their knowledge, consent or permission. Claimants further allege that these stocks resulted in account losses for the Claimants.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $61,770.63 on March 10, 2022.
The client’s attorney alleged her advisor purchased certain equity securities in her account from August to September 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $164,809.33 on January 13, 2022.
The clients alleged their advisor purchased certain equity securities in their account(s) from June to September 2021 without their authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $643,792.51 on January 11, 2022.
The clients alleged their advisor purchased certain equity securities in their account(s) from July to October 2021 without their authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $355,507.63 on January 05, 2022.
The clients alleged their advisor purchased certain equity securities in their account(s) from July to September 2021 without their authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $73,766.34 on January 01, 2022.
The client alleged her advisor purchased certain equity securities in her account from July to September 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $281,237.74 on December 31, 2021.
The clients alleged their advisor purchased certain equity securities in their account(s) from June to August 2021 without their authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $347,125.74 on December 31, 2021.
The client alleged his advisor purchased equity securities in his account(s) from June to September 2021 without his authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $178,559.94 on December 21, 2021.
The client alleged her advisor purchased an equity security in her account in September and October 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint on December 13, 2021.
The client alleged her advisor purchased certain equity securities in her account(s) from June to September 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,113,611.67 on December 08, 2021.
The client alleged her advisor purchased certain equity securities in her account(s) in July and August 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $142,530.24 on December 06, 2021.
The client alleged her advisor purchased certain equity securities in her account(s) from June to August 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $138,524.38 on December 06, 2021.
The client alleged her advisor purchased an equity security in her account(s) from September to October 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $105,562.76 on November 30, 2021.
The client alleged her advisor purchased certain equity securities in her account from June to September 2021 without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $72,123.84 on November 29, 2021.
The client alleged her advisor purchased an equity security in her account from August to September without her authorization.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $259,929.05 on November 19, 2021.
The clients alleged their advisor purchased certain equity securities in their accounts without their authorization.
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. 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.
The care obligation also requires the broker to address the client’s specific needs through obtaining specific investment profile information on the client. The associated person typically will ask the customer for information such as the investor’s risk tolerance or ability to withstand account value declines or increases; experience with investments available; investment objectives and goals; investment time horizon; liquidity needs; assets such as investment accounts held at other financial institutions; tax information; their age and retirement plans; and other information that a customer may want to provide to the advisor to help them to properly address the services needed. 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 core obligations that brokers must comply with. There is the duty of care obligation requiring financial advisors to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest among other duties. In order to do that the broker must evaluate the potential risks, rewards, and costs associated with a product, account type, or series of transactions being recommended.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. 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. 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.
Dunn has been in the securities industry for more than 9 years. Dunn has been registered as a Broker with Ameriprise Financial Services, LLC 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.