Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joann Cadovich (Cadovich), currently associated with Glp Investment Services, LLC, has at least one disclosable event. These events include one customer complaint, alleging that Cadovich recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint on May 01, 2023.
On May 1, 2023, the client called the Firm to share her frustration regarding her account’s poor performance, namely the drop in value between October 2021 and October 2022 due to the overall decline in the markets. The client was not sure how to handle her disappointment as she admits she should have paid closer attention to her statements and asked more specific questions about the investments in her account. \, On or about October 12th, 2021, the client reached out to the RR asking why she was in growth and income funds versus something more conservative with lower risk. The client’s account documents indicate that she desired a ‘moderate’ risk tolerance. Her account positions were consistent with this ‘moderate’ risk tolerance. The client in consultation with the RR made the decision to move four (4) of the growth funds’ balances into an existing position in the account- the 2035 Target Date Fund -to further reduce the risk profile of the account. \, On or about October 19th, 2022, the client emailed the RR about additional losses in her account, again citing that she had requested it be more conservative with little risk. The client never expressed that she was interested in ‘no growth ‘ or ‘no risk’. The RR stated that the account was now more conservative due to the move into the 2035 Target Date Fund as compared to the pre-existing Growth Funds. However, the client states she was insistent that she wanted less risk and felt the RR should have recommended other, more conservative fund options. She felt the RR did not offer her additional alternatives at the time, like a money market or annuity. An annuity would not have been appropriate for her newly stated ‘no to little risk’ goals nor for her re-stated time horizon (4-6 years).\, The Firm reviewed these concerns with the RR. The RR believed the client was in a more conservative position and acknowledged that the prior year was challenging for both more conservative funds and growth funds. However, even given the client’s concerns and questions, the RR did not suggest a move to a money market funds (or similar).\, After discussion with the client and review of the allegations, the Firm, solely to maintain good client relations, made the decision to work with the client and accordingly, the Firm made corrective, as/of trades to move her assets to a money fund effective back to 10.19.2021.\, The client agreed to and is currently satisfied with this remedy. The Firm does not believe that the RR engaged in any wrongdoing or that there was a violation of any securities rules or laws. In any event, the Firm has counseled the RR to be more effective in the communication of risk scenarios and alternative product offerings to clients to avoid future similar allegations.