Articles Tagged with Rockwell Securities

shutterstock_179921270The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Honetta Kao (Kao). According to BrokerCheck records Kao is subject to two customer complaints, one regulatory action, onr investigation, and one financial matter.

FINRA terminated Kao after the broker failed to respond to a letter request for information in August 2015. Prior to that time, in January 2015, FINRA opened an investigation into Kao alleging potential willful violations of securities fraud laws and FINRA rules. In addition, in April 2015, a customer filed a complaint alleging that Kao mishandled the account and provided bad advice. The complaint is pending. Another client alleged in May 2013, that Kao engaged in unsuitable recommendations and unauthorized trading.

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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