The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker David Manor (Manor). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Manor has been subject to two customer disputes concerning unsuitable investment recommendations and false representations of investments. One of these disputes is currently still pending. In addition, Manor has been subject to resignation from a previous employer.
Most recently, in April 2018, a customer alleged that in 2017, Manor recommended unsuitable investments to the customer. The customer requested $224,837.25 in damages. This dispute is currently still pending.
In January 2016, a customer alleged that Manor falsely represented investments to the customer by failing to disclose the surrender penalty to the investment. The customer further alleged that the investment was unsuitable to her financial status and needs, being that the funds were her only source of income. The customer requested $30,000 in damages.
In addition, in January 2018, Manor resigned from Wells Fargo Clearing Services, LLC (Wells Fargo) due to customer allegations that Manor had recommended the customer to invest in unsuitable investments outside of the firm.
Brokers must make investment recommendations that are suitable and match the needs of their client. For an investment to be suitable, a certain criteria has to be met; there must be a reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence into the investment, and the broker must match the investment as being appropriate for the customer’s specific investment needs and objectives. Common due diligence requires for the broker to look into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors.
Brokers are also required to represent investments in a truthful and accurate manner to clients. False representations include statements that omit or misrepresent information that is material to an investor. The securities laws also require representations to investors be balanced in light of all the information being provided to the investor. Advisers are prohibited from only listing the positive aspects of a security without disclosing downside risk and negative features in a balanced and fair manner. An omission of the downside risk of an investment can also be a basis for a fraud claim.
Manor entered the securities industry in June 2012. From August 2016 to February 2018, Manor was registered with Wells Fargo. From February 2013 to July 2016, Manor was registered with Santander Securities LLC. From June 2012 to January 2013, Manor was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated. Manor is currently not registered with any firm.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of unsuitable investment recommendations and false representations. Our consultations are free of charge and the firm is only compensated if you recover.