Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Mark Just (Just), previously associated with Triad Advisors LLC, has at least 8 disclosable events. These events include 8 customer complaints, alleging that Just 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 $150,000.00 on December 04, 2024.
Claimant alleges recommendations of certain direct investments were not in keeping with his investment needs and objectives, and that full disclosures regarding the investments were not made.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $250,000.00 on November 22, 2023.
Claimant alleges that recommendations of certain variable annuity contracts and a real estate investment trust were not in keeping with her needs and objectives, and that proper disclosures were not made to her regarding the investments.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $130,000.00 on November 20, 2023.
The claimant alleges that the financial professional sold an alternative investment that was unsuitable.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on September 27, 2023.
Claimant alleges that one alternative investment recommendation, which he made more than six years ago, was not in keeping with his needs and objectives, and was not adequately explained to him.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $300,000.00 on August 22, 2023.
Placement of unsuitable (high-risk, illiquid) alternative investments is alleged
FINRA BrokerCheck shows a settled customer complaint with a damage request of $242,842.00 on August 17, 2023.
Overconcentration in illiquid investments alleged, unsuitable advice and mismanagement alleged.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000.00 on June 14, 2023.
Claimant alleges misrepresentation and unsuitability with regard to the sale of alternative invesment.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on March 29, 2023.
Claimant’s attorneys allege that recommendations of certain non-traded alternative investments were not in keeping with the client’s investment objectives and that adequate disclosures regarding the investments were not made.
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. Accordingly, a brokerage firm may not rely blindly upon the issuer for information concerning a company in lieu of conducting its own reasonable investigation.
Another protective measure is to require broker discloses. Brokers are required to report events to FINRA, such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters, as shown on their BrokerCheck reports. FINRA has recognized that recent studies offer evidence showing that brokers with a past history of regulatory and customer complaint issues are more likely to have such issues 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.
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.