Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Leland Whiting (Whiting), previously associated with Hornor, Townsend & Kent, INC., has at least 5 disclosable events. These events include 5 customer complaints, alleging that Whiting 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 $257,509.00 on June 15, 2020.
INRA arbitration alleging that HTK registered representative Leland Blair Whiting sold unregistered securities issued by Future Income Payments, LLC. It claims ‘at least $257,509′ actual damages, benefit of the bargain damages, model portfolio damages, lost opportunity costs, unspecified punitive damages, interest, costs and attorneys’ fees. The causes of action are Violations of Federal Securities Laws (sale of unregistered securities and fraud); Violations of Utah Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact); Violations of Idaho Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact)Violation of the Idaho Consumer Protection Act; 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 $900,000.00 on June 15, 2020.
FINRA arbitration alleging that HTK registered representative Leland Blair Whiting sold unregistered securities issued by Future Income Payments, LLC. It claims ‘at least $900,000′ actual damages, benefit of the bargain damages, model portfolio damages, lost opportunity costs, unspecified punitive damages, interest, costs and attorneys’ fees. The causes of action are Violations of Federal Securities Laws (sale of unregistered securities and fraud); Violations of Utah Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact); Common Law Fraud; Breach of Fiduciary Duty; Negligence and Gross Negligence.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $900,000.00 on June 15, 2020.
FINRA arbitration alleging that HTK registered representative Leland Blair Whiting sold unregistered securities issued by Future Income Payments, LLC. It claims ‘at least $900,000′ actual damages, benefit of the bargain damages, model portfolio damages, lost opportunity costs, unspecified punitive damages, interest, costs and attorneys’ fees. The causes of action are Violations of Federal Securities Laws (sale of unregistered securities and fraud); Violations of Utah Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact); Common Law Fraud; Breach of Fiduciary Duty; Negligence and Gross Negligence.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $257,509.00 on June 15, 2020.
INRA arbitration alleging that HTK registered representative Leland Blair Whiting sold unregistered securities issued by Future Income Payments, LLC. It claims ‘at least $257,509′ actual damages, benefit of the bargain damages, model portfolio damages, lost opportunity costs, unspecified punitive damages, interest, costs and attorneys’ fees. The causes of action are Violations of Federal Securities Laws (sale of unregistered securities and fraud); Violations of Utah Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact); Violations of Idaho Securities Act (sale of unregistered securities, unsuitability, misrepresentation, and omission of material fact)Violation of the Idaho Consumer Protection Act; Breach of Contract; Common Law Fraud; Breach of Fiduciary Duty; Negligence and Gross Negligence.
FINRA BrokerCheck shows a settled customer complaint on March 05, 2020.
FINRA claim alleging selling away by former registered representative, of Future Income Payments, LLC (FIP) assets, and selling allegedly unsuitable life insurance policies and annuities.
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. 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.
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. The Reg BI rule applies a fiduciary principles and requires an associated person to act in the retail investor’s “best interests” while barring the broker from placing their own financial interests and compensation incentives ahead of the investor’s best interest. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest. Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Whiting has been in the securities industry for more than 43 years. Whiting has been registered as a Broker with Hornor, Townsend & Kent, INC. since 2011.
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.