Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker William Utanski (Utanski). According to BrokerCheck records Utanski is subject to three customer complaints. The customer complaints against Utanski allege securities law violations that including unsuitable investments and churning (excessive trading) among other claims. The claims appear to largely relate to allegations regarding the inappropriate sale of Dendreon Corporation stock.
One claim that was filed in October 2015 claimed that Utanski made unsuitable investment recommendations in 2011, that included closed-end funds and Dendreon stock. The customer also allege Utanski churned their account suffered compensatory damages of $200,000. 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.