Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Hagin Richeson (Richeson), currently associated with Corinthian Partners, L.l.c., has at least 4 disclosable events. These events include 4 customer complaints, alleging that Richeson recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,001.00 on July 08, 2024.
Violations of federal securities laws; breach of contract; common law fraud; breach of fiduciary duty; Negligence and gross negligence;
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on May 15, 2024.
Customer claims that the product was unsuitable although she signed documents that she understood the risks associated with the product. A prospectus purchase. This was an unsolicated transaction from the broker.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $3,000,000.00 on March 19, 2024.
All counts date from December 2016 to Present. Fraudulent Concealment: non disclosure of material information ; Violation of Securities Act 1933 Section 17(a) of Securities Act 1933: No registration statement; Florida Blue Sky laws; Breach of Contract: mismanagement of investment account; Misrepresentation; Intentional Misrepresentation; Unjust enrichment; Breach of Fiduciary Duties and Professional Malfeasance;
FINRA BrokerCheck shows a settled customer complaint with a damage request of $9,000,000.00 on October 02, 2023.
Claimants opened an account with the Firm on or about 12 April 2017. On or about 15 September 2017 claimant invested $3,200,000 (approximately) into a preferred stock issued by a public company. Claimant used funds from the same company’s issued debt which was purchased prior to knowing respondent, as the preferred paid a higher distribution. In subsequent years claimant continued to invest further in the debt and preferred stock of the same issuer. In 2022 the issuer filed chapter 11 to reorganize the company ceasing distributions to investors. Claimant alleges improper sales practice, due diligence and suitability for the debt and preferred issues purchased through the representative.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. 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. 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.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. 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.
Richeson entered the securities industry in 2007. Richeson has been registered as a Broker with Corinthian Partners, L.l.c. since 2016.
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.