Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Craig Carson (Carson), previously associated with Intervest International Equities Corporation, has at least 5 disclosable events. These events include 5 customer complaints, alleging that Carson recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $922,349.00 on September 06, 2022.
Claimant alleges violations of state and federal securities acts, breach of fiduciary duties and negligence, constructive fraud, breach of contract and failure to supervise.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $226,000.00 on August 29, 2022.
Claimant alleges violations of federal securities laws, breach of fiduciary duties and negligence, breach of contract, failure to supervise, misrepresentation and omissions, unsuitable investments and failure to act in the best interest of the client.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $6,100,000.00 on June 28, 2022.
Claimants allege Breach of Fiduciary duties, negligence, breach of contract and failure to supervise.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $6,100,000.00 on June 28, 2022.
Claimants allege Breach of Fiduciary duties, negligence, breach of contract and failure to supervise.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $300,000.00 on March 11, 2022.
Client claims inappropriate sales of L-bonds and Preferred Stock of GWG.
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established a ‘best interest’ standard for brokerage firms and registered representatives. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest. Reg BI comes with different core obligations that brokers must comply with. There is the duty of care obligation requiring financial advisors to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest among other duties. In order to do that the broker must evaluate the potential risks, rewards, and costs associated with a product, account type, or series of transactions being recommended.
The care obligation also requires the broker to address the client’s specific needs through obtaining specific investment profile information on the client. The associated person typically will ask the customer for information such as the investor’s risk tolerance or ability to withstand account value declines or increases; experience with investments available; investment objectives and goals; investment time horizon; liquidity needs; assets such as investment accounts held at other financial institutions; tax information; their age and retirement plans; and other information that a customer may want to provide to the advisor to help them to properly address the services needed. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest. An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Carson has been in the securities industry for more than 50 years. Carson has been registered as a Broker with Intervest International Equities Corporation since 2003.
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.