Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Alfred Vanderlaan (Vanderlaan), previously associated with Westpark Capital, Inc., has at least 6 disclosable events. These events include 5 customer complaints, one tax lien, alleging that Vanderlaan recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 22, 2025.
Without admitting or denying the findings, Vanderlaan consented to the sanctions and to the entry of findings that he willfully violated Rule 15l-1(a)(1) of the Exchange Act (Reg BI) by recommending that two retail customers invest in speculative, unrated corporate bonds that were not in their best interests based on their investment profiles. The findings stated that the customers’, one of whom was a senior, stated investment objective was growth and income, and it did not include speculation. Vanderlaan’s recommendations were not in the customers’ best interest based on their investment profiles, including their moderate risk tolerance, in light of the high degree of risk associated with the bonds. Vanderlaan received a total of $6,508 in commissions in connection with his recommendations.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on September 26, 2023.
Breach of Contract and warranties, promissory estoppel, Violation of State Securities Statutes, Breach of Fiduciary Duty, and Misrepresentation.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $40,000.00 on July 28, 2023.
Negligence, Misrepresentation and Omissions of Material Fact, Breach of Fiduciary Duty, Failure to Supervise, and unsuitability.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $105,000.00 on June 30, 2023.
Claimants allege that in 2020 the clients renew their GWG L Bonds. They allege Breach of Fiduciary Duty, Negligence, Negligent Misrepresentation, Breach of Contract, Failure to Supervise, and Violation of Reg BI.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on June 16, 2023.
Breach of fiduciary duty, negligence, Breach of Contract, Failure to supervise, and Negligence – Violation of Regulation Best Interest.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $315,000.00 on March 21, 2023.
The SOC alleges that Claimant was recommended to invest in an unsuitable investment, and that WestPark, through its registered rep, failed to disclose materials and failed to properly supervise the rep.
Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. In addition, the SEC has promulgated ‘Regulation Best Interest (Reg BI)‘ which according to the SEC enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.
Brokers have an obligation to first obtain and evaluate sufficient information about a retail investor to form a reasonable basis to believe the account recommendations are in the retail investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. The cost of the recommendation and information about the investor are always part of material information. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.
In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. So, a brokerage firm should not depend solely on information from the issuer regarding a company, but must perform its own thorough investigation.
Additional, it should be required to mandate broker disclosures for investor’s protection. Brokers are required to disclose reportable events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on FINRA’s BrokerCheck reports for public viewing. FINRA has recognized that recent research shows brokers with a past record of regulatory or customer complaint issues are more likely to have such problems again in the future. FINRA’s Office of the Chief Economist (OCE) published a study showing the predictability of disciplinary and disclosure events based on past similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.
Vanderlaan has been in the securities industry for more than 38 years. Vanderlaan has been registered as a Broker with Westpark Capital, Inc. since 2019.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.