Articles Tagged with unsuitable advice attorney

shutterstock_183549914-300x200Broker Sebastian Wyczawski, currently employed at Joseph Stone Capital, LLC., (Joseph Stone) has been subject to at least three customer complaints during the course of his career. His most recent customer complaints allege unsuitability and failure to supervise.  According to a BrokerCheck report, in June 2018, Wyczawski was alleged of making unsuitable recommendations.  This matter against him settled for $17,500.  Additionally in December 2019, a customer complaint was filed against Wyczawski for his alleged failure to supervise. In his Broker Comment, Wyczawski states: “I am being named in this arbitration due to the fact that I was the OSJ branch owner.” The matter, for the requested amount of $235,000 is still pending. Moreover, in March 2004, Wyczawski was alleged to have engaged in unauthorized trading. This matter ultimately settled for $37,500.

Brokers have an obligation to make only suitable recommendations for investments to the client.  There are many investments that are not appropriate for the majority of investors or for certain investors given their risk tolerance, age, and other factors.  Brokers should not present these investment options to clients.  There are two screens that brokers must employ to determine whether an investment is suitable for a client.  First, there must be a reasonable basis for the recommendation – meaning that the product has been investigated and due diligence conducted into the investment’s features, benefits, risks, and other relevant factors.  The broker must conclude that the investment is suitable for at least some investors and some securities may be suitable for no one.  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.

Continue Reading

shutterstock_94719376-300x214The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Clint Keener (Keener), formerly employed by Capital City Securities, LLC (Capital City) has been subject to at least five customer complaints, three regulatory actions, and one employment termination for cause during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Keener’s customer complaint alleges that Keener recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In November 2019 FINRA brought a regulatory action against Keener that he settled consenting to findings that he refused to appear for FINRA on-the-record testimony requested in connection with an investigation into potential unsuitable recommendations.

In July 2010 FINRA brought a regulatory action against Keener that he settled consenting to findings that he made unsuitable trades resulting in an overconcentration in a client account of non-investment grade bonds.  FINRA also determined that certain transactions were mismarked as unsolicited when in fact thery were solicited.

Continue Reading

Contact Information