Articles Tagged with Invest Financial

shutterstock_160486019-300x300According to BrokerCheck records financial advisor Eric Stuckey (Stuckey), currently employed by Ameriprise Financial Services, Inc. (Ameriprise) has been subject to five customer complaints and two liens.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Stuckey’s customer complaints allege that Stuckey made unsuitable recommendations in different investments including variable annuities and energy stocks.

In May 2018 a customer alleged the broker recommended unsuitable investments, misrepresented features of the investments and failed to disclose risks in the investments causing $220,000 in damages.  The claim is currently pending.

In January 2018 a customer alleged that the broker placed them in high risk funds which are not suitable causing $79,000 in damages.  The claim was settled for $25,000.

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.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

shutterstock_85873471The securities lawyers of Gana Weinstein 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.

shutterstock_20354398The investment lawyers of Gana Weinstein 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.