According the BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) the agency suspended former Global Arena Capital Corp (Global Arena) broker Niaz Elmazi a/k/a Nick Morrisey (Morrisey) concerning allegations that Morrisey failed to respond to FINRA’s requests for information.
Morrisey has a history of regulatory complaints and also has one customer complaint on his record. In 2013, the state of Arkansas brought action against Morrisey alleging that in July 2012, Morrisey contacted an Arkansas resident via a cold call in order to recommend the purchase of a corporate bond issued by Verso Paper Corp (Verso). However, Morrisey was unaware that the Arkansas resident was actually employed as a senior securities examiner with the Arkansas securities department and that he had contacted the examiner on an office phone during business hours. During the conversation it was alleged by Arkansas that Morrisey made untrue and false statements when recommending the Verso bond. In addition, Arkansas alleged that Morrisey had no reasonable grounds for believing that the recommendation was suitable for the investor prior to making the recommendation.
All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.
The number of complaints and regulatory actions made by investors against Morrisey is relatively large by industry standards. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Far fewer brokers have multiple customer complaints approaching the number of complaints made against Morrisey. Brokers must disclose different types of events, not necessarily all of which are customer complaints. These disclosures can include IRS tax liens, judgments, and even criminal matters.
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 investments. Our consultations are free of charge and the firm is only compensated if you recover.