Securities Lawyers Blog
The investment attorneys at Gana Weinstein LLP are investigating a customer complaint against Garden State Securities broker Dave Nicolas (Nicolas).
According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), A customer alleged in June 2016 that Nicolas engaged in unsuitable investments and churning and alleged failure to supervise on the part of Garden State Securities, Inc.
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.