Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Linda Wimsatt (Wimsatt), previously associated with American Trust Investment Services, Inc., has at least 8 disclosable events. These events include 7 customer complaints, one regulatory, alleging that Wimsatt recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on November 15, 2024.
Without admitting or denying the findings, Wimsatt consented to the sanctions and to the entry of findings that she recommended her retail customers, some of whom were seniors and retired, invest in speculative, unrated corporate bonds. The findings stated that the bonds were not suitable for the customers, based on their investment profile, including their moderate risk tolerance, in light of the high degree of risk associated with the bonds. Wimsatt earned $10,668.50 in commissions from the recommendations. The findings also stated that Wimsatt willfully violated Rule 15/-l(a)(l) under the Securities Exchange Act of 1934 (Reg BI) by making recommendations that were not in her customers’ best interests based on their investment profiles. The customers, who were seniors, had stated investment objectives of income and growth, and they did not include speculation. Wimsatt earned $10,306.25 in commissions from the recommendations.