Articles Tagged with unsuitability

shutterstock_20354401-300x200The 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.

shutterstock_178565714-300x200Gana Weinstein LLP is investigating new customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker Aaron Robert Parthemer (Parthemer). Our firm has been investigating Parthemer since 2015, when Parthemer was barred from FINRA for engaging in private securities transactions, also known as “selling away”. According to FINRA’s BrokerCheck records for Parthemer, there are 4 new disclosures on his record since his last regulatory action in 2015. These disclosures including customer complaints against Parthemer alleging unsuitable and unauthorized investments, and misrepresentation. Parthemer was barred permanently from FINRA on April 2015. His registration to the New Jersey Bureau of Securities, a self-regulatory organization, was revoke in September 2015.

The most current customer complaint pending against Parthemer is from May 2017, alleging Parthemer made unsuitable investments starting in 2009 when Parthemer was employed at Wells Fargo Advisors and Morgan Stanley Smith Barney. During Parthemer’s stint at Morgan Stanley, the client alleged that Parthemer presented outside investment opportunities that he had a personal interest in, which was unauthorized by the firm. The customer alleged damages of $1,622,844.00.

A second customer complaint was submitted in September 2016 regarding Parthemer’s actions while employed at Morgan Stanley Smith Barney. The customer alleged that Parthemer solicited the client to invest in outside investments that were not authorized by Morgan Stanley. The alleged damages are $205,000.00 and is still pending.

shutterstock_94632238-300x214The experienced securities fraud lawyers of Gana Weinstein LLP are investigating multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) against broker Andrew Bruce Elsoffer (Elsoffer). According to Elsoffer’s FINRA BrokerCheck records, there are several disclosures on his record pertaining to securities fraud, misrepresentation, unsuitability, breach of fiduciary duty, and negligence amongst other allegations.

Elsoffer entered the securities industry in 1994 and was only registered with Merrill Lynch, Pierce, Fenner & Smith, Inc. until November 2011. He is currently employed at Stifel Nicolaus & Co., Inc. since November 2011. He was previously employed at:

• Bank of America (December 2009 – October 2011)