Suitability

Michael Hagan subject to Multiple Customer Disputes for Unsuitable Investment Recommendations

July 11, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Voya Financial Advisors Inc. (Voya Financial) broker Michael Hagan (Hagan). According to BrokerCheck records, Michael has been subject to seven customer complaints. The majority of these complaints concern the misrepresentation and unsuitable recommendation of variable annuities, equity indexed annuities, and Variable Universal Life (VUL) insurances.

Most recently, in April 2017, a customer alleged that Hagan recommended unsuitable investment products for the customer and misrepresented the nature of the investments. The dispute was settled at $164,455.

In January 2010, a customer alleged that in February 2000, Hagan’s recommendation of John Hancock Variable Universal Life (VUL) insurance was unsuitable and should be reexamined.

Bruce Musselman Subject to Customer Complaints Alleging Unsuitable Investments

July 8, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Fortune Financial Services, Inc. (Fortune Financial) broker Bruce Musselman (Musselman). According to BrokerCheck records, Musselman has been subject to nine customer complaints and one criminal regulatory action.

Most recently, in February 2013, customers alleged that Musselman recommended unsuitable investments, misrepresented securities, over-concentrated customer funds into aggressive investments, and excessively used margin. The dispute was settled at $14,900.

In August 2011, a customer alleged that from 2007 to 2009, Musselman recommended highly risky investments that were unsuitable and inappropriate to customer’s needs. The customer requested $80,000 in damages.

David Watkins Subject to Pending Customer Complaint Alleging $5,000,000 in Damages

June 30, 2018 | by Staff Attorney

Securities attorneys at Gana Weinstein LLP are investigating UBS Financial Services Inc. (UBS Financial) broker David Watkins (Watkins). According to BrokerCheck records, Watkins has been subject to two customer disputes, one of which is still pending. In addition, Watkins has been subject to two tax liens. The majority of these disputes concern unsuitable recommendations in bonds, stocks, and exchange-traded funds (ETFs).

In August 2017, a customer alleges that from May 2013 to October 2016, Watkins recommended for the customer to buy fixed-income securities and ETFs which were unsuitable to the customers investment needs. The customer has requested $5,000,000 in damages. This dispute is currently still pending.

In September 2015, a customer alleged that from January 2011 to August 2015, Watkins placed the customer in bonds that were unsuitable to the customer and not rated AA or higher as the customer had approved. The case settled for $60,000.

Thomas Curtis Subject to Unsuitable Investment Complaint Alleging Over $4,000,000 in Losses

June 28, 2018 | by Staff Attorney

Investment fraud attorneys at Gana Weinstein LLP have been investigating Dawson James Securities, Inc. (Dawson James Securities) broker Thomas Curtis (Curtis). According to BrokerCheck Records, Curtis has been subject to 6 customer disputes, one of which is still pending. The majority of these disputes involve unsuitable investment recommendations and the false representation of investments.

In August 2017, a customer alleged that Curtis misrepresented the nature of securities and provided unsuitable investment recommendations to the customer. The customer is requesting $4,952,610 in damages. This dispute is currently still pending.

In October 2015, a customer alleged that from October 2014 to September 2015, Curtis misrepresented the material facts of the investments recommended. The customer has requested $100,000 for damages.

Thomas Logue Subject to Multiple Pending Complaints for Unsuitable Investments

June 27, 2018 | by Staff Attorney

The investment attorneys at Gana Weinstein LLP have been investigating previously registered broker Thomas Logue (Logue). According to BrokerCheck Records, Logue has been subject to 5 customer complaints concerning misrepresentation and unsuitable investment recommendations, two of which are still pending. In addition, Logue has been subject to a financial regulation.

In February 2018, a customer alleged that Logue misrepresented the material facts about an investment and that this investment recommendation was unsuitable. The customer has requested $188,025.76 in damages. This dispute is currently still pending.

In December 2017, a customer alleged Logue made unsuitable transactions and is requesting them to be rescinded. The customer has requested $127,520.30 in damages. This dispute is currently still pending.

Broker Jeffrey Mcaleney Subject to 10 Customer Disputes Over Unsuitable Investments

June 22, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP have been investigating J.P. Morgan Securities LLC (J.P. Morgan) broker Jeffrey Mcaleney (Mcaleney). According to BrokerCheck Records, Mcaleney has been subject to 10 customer disputes, the majority of which concern unsuitable equity, preferred stock, funds, and limited partnership investments.

In October 2017, a customer alleged that from 2007 to 2016, Mcaleney recommended investments that were unsuitable because they were contrary to the customer’s stated goals. The customer requested $313,909.22 in damages.

In October 2017 another customer similarly alleged that from 2014 to 2016, Mcaleney was recommending unsuitable investments that didn’t align with the customer’s needs and goals.

Cormac Maughan Subject of Pending Customer Complaint Alleging Unsuitable Bond Investments

June 20, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP have been investigating The GMS Group, LLC (GMS Group) broker Cormac Maughan (Maughan). According to BrokerCheck records, Maughan has been subject to 2 customer disputes involving unsuitable recommendations of municipal bonds, one of which is still pending. Maughan has also been subject to two regulatory actions in which New York Stock Exchange (NYSE) sanctioned Maughan for various violations of the securities laws, including unauthorized trading and unsuitable investments.

In November 2017, a customer alleged that from January 2009 through to November 2015, Maughan recommended Puerto Rico municipal bonds which were unsuitable to the customer’s investment needs and that Maughan breached his fiduciary duty to the client. This dispute is still pending.

In addition, in May 2004, the NYSE found that Maughan engaged in unauthorized trading by exercising discretionary power with oral but not with written authorization from customer or member firm. The NYSE also found that Maughan also engaged in unsuitable investments that were inconsistent and excessive for his customer in terms of the customer’s age, investment objectives, and financial circumstances. This violation of NYSE rules 408(a) and 3529c) resulted in a one month suspension for Maughan.

Michael Mathias Subject to One Pending Customer Complaint Alleging Unsuitable Investments

June 18, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Summit Brokerage Services (Summit Brokerage) broker Michael Mathias (Mathias). According to BrokerCheck records, Mathias has been subject to twenty customer complaints, two of which are still pending. The majority of the complaints concern the unsuitable recommendation of variable annuities.

Most recently, in August 2017, a customer alleged that Mathias recommended unsuitable investments to customers, requesting $433,687 in damages. This dispute is currently still pending.

In 2001, a customer alleged that Mathias did not reimburse client for deferred sales charges. The customer further alleges that the annuity investment recommended was not suitable for him.The client is requesting $10,000 in damages. This dispute is currently still pending.

FINRA Suspends Brad Lawing for Unsuitable Investment Recommendations

June 15, 2018 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against Brad Lawing (Lawing). According to BrokerCheck records, Lawing has been subject to 11 customer complaints. In addition, Lawing has been subject to a regulatory matter in which FINRA sanctioned Lawing for various violations of the securities laws including unsuitable recommendations.

In November 2017, FINRA found that Lawing recommended shares of a business development company (BDC) to three customers that did not satisfy suitability standards for two customers and resulted in over-concentration for the other customer. FINRA found that Lawing did not use reasonable diligence to ascertain customers’ financial situation, risk tolerance, and other factors affecting for suitability consideration. FINRA also alleged that in one case Lawing recommended an investment without speaking with the customer. Additionally, Lawing disclosed non public information for ten of his customers whose previous registered representative was statutorily disqualified from participating in the brokerage industry. In November 2017, Lawing was suspended for 5 months and fined $10,000.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation, the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

John Maloney Has Multiple Customer Complaints Over Unsuitable Investments

June 11, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor John Maloney (Maloney), formerly employed by Edward Jones has been subject to five customer complaints and one termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), in May 2016 Edward Jones terminated Maloney stating that he did not adhere to the firm’s policy regarding suitability of recommendations. Most of a Maloney’s customer complaints allege that Maloney made unsuitable recommendations in equity securities.

In November 2017 a customer made allegations of misrepresentation, suitability, breach of fiduciary duty, and churning of her accounts. The claim is currently pending.

In September 2017 a customer alleged an unsuitable investment recommendation in Fire Eye stock causing losses of $329,523. The claim is currently pending.