Articles Tagged with Invest Financial

shutterstock_180341738-200x300According to BrokerCheck records Terry Brodt (Brodt) has been sanctioned by The Financial Industry Regulatory Authority (FINRA) over allegations that, while associated with Garden State Securities, Inc. (Garden State) the broker exercised discretion in a customer’s account without obtaining written authorization or written approval of the account as discretionary from his brokerage firm.  FINRA found that Brodt exercised discretion in accounts maintained by customers without written authorization and without approval from Garden State to treat those customer accounts as discretionary. FINRA also found that Brodt provided inaccurate responses about his use of discretion in connection with his firm’s annual compliance questionnaires.

In addition, to the FINRA sanctions Brodt has been subject to five customer complaints, two financial disclosures including a bankruptcy filing in July 2016, and ten judgment or tax liens.  Some of the complaints against Brodt allege securities law violations including that the broker engaged in churning (excessive trading) and unauthorized trading among other claims.

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shutterstock_85873471The securities lawyers of Gana LLP are investigating a customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against William Byrd (Byrd) alleging unsuitable investments, negligence, and breach of fiduciary duty among other claims.  According to brokercheck records Byrd has been subject to three customer complaints.

A customer complaint filed in June 2016 alleging that the broker made unsuitable recommendations, misrepresented investments and breached his fiduciary duty causing damages in the amount of $65,000.  The claim is currently pending.

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.

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shutterstock_20354398The investment lawyers of Gana LLP are investigating a customer complaint brought before the Financial Industry Regulatory Authority (FINRA) against David Ferland (Ferland) working out of the York, Maine office allegedly received a loan of $721,408 from a customer.  The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.  In addition to the loan complaint there have been seven financial disclosures on Ferland’s record indicating that broker had financial trouble.

At this time it unclear the nature and scope of Ferland’s outside business activities and private securities transactions.  However, according to Ferland’s public records his outside business activities include real estate business, DL Properties LLC, The Ice House LLC, YFS, LLC, and Independent Insurance Brokering. Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, or insurance agents to clients of those side practices.

Ferland entered the securities industry in 2006.  From August 2007 until August 2012, Ferland was associated with Invest Financial Corporation.  Since August 2012 Ferland has been associated with Ameriprise Financial Services, Inc.

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