Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Robert Vance (Vance), previously associated with Moloney Securities Co., Inc., has at least 14 disclosable events. These events include 13 customer complaints, one civil event, alleging that Vance 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 $156,000.00 on November 25, 2024.
Suitability/negligence. 2018-2021
FINRA BrokerCheck shows a pending customer complaint with a damage request of $125,000.00 on October 08, 2024.
Suitability/negligence. 2021
FINRA BrokerCheck shows a pending customer complaint on September 27, 2024.
Plaintiff united states securities and exchange commission, for its complaint against defendant robert m. vance, alleges in its complaint that this matter concerns recommendations by vance that certain retail customers purchase high risk, illiquid debt securities known as l bonds. From approximately june 30, 2020, through approximately january 15, 2022, these recommendations violated rule 15l-1(a) under the securities exchange act of 1934 (regulation best interest or reg bi). L bonds were unrated corporate bonds offered by gwg holdings, inc. (gwg). According to gwg’s disclosures during the relevant period, (a) l bond investments involved a high degree of risk, including the risk of losing an investor’s entire investment; (b) l bond investments may be considered speculative; (c) l bond investments were only suitable for investors with substantial financial resources and no need for liquidity in the investment; and (d) gwg would use a portion of the l bond proceeds to repay existing l bond holders. In addition, in november 2021, gwg disclosed, among other things, that several enumerated factors raised substantial doubt regarding its ability to continue as a going concern. Despite these disclosures, in recommending the purchase of l bonds to retail customers, vance failed to exercise reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with the recommendations. Vance also recommended the purchase of l bonds to at least four retail customers for whom he did not have a reasonable basis to believe the recommendations were in the customers’ best interest based on the customers’ investment profiles and the potential risks, rewards, and costs associated with the l bonds. During the relevant period, at least 50 of vance’s retail customers purchased a total of approximately $4.3 million in l bonds upon vance’s recommendations. Many of these customers were at or near retirement age and had moderate risk tolerance. There is a reasonable likelihood that vance will, unless enjoined, continue to engage in transactions, acts, practices, and courses of business of similar purport and object to those set forth in this complaint. The sec therefore seeks a judgment against vance providing permanent injunctive relief; disgorgement of ill-gotten gains; imposing civil monetary penalties; as well as other appropriate and necessary relief.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on June 10, 2024.
Suitability/negligence. 2017-2021
FINRA BrokerCheck shows a pending customer complaint on March 20, 2024.
Suitability/negligence. 2020-2021
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,000,000.00 on October 30, 2023.
Suitability/negligence. 2014-2018
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on October 30, 2023.
Suitability/negligence. 2014-2018.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $500,000.00 on October 23, 2023.
Suitability/negligence. 2013-2018
FINRA BrokerCheck shows a settled customer complaint on August 07, 2023.
Suitability/negligence. 2017-2019
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on June 15, 2023.
Suitability/negligence. 2018
FINRA BrokerCheck shows a pending customer complaint with a damage request of $76,000.00 on June 12, 2023.
Suitability/negligence. 2018-2020
FINRA BrokerCheck shows a settled customer complaint with a damage request of $76,000.00 on June 12, 2023.
Suitability/negligence. 2018-2020
FINRA BrokerCheck shows a settled customer complaint with a damage request of $110,450.00 on May 15, 2023.
Suitability/negligence. 2017-2020
FINRA BrokerCheck shows a settled customer complaint with a damage request of $120,000.00 on April 25, 2023.
Suitability/negligence. 2017
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.
Additional investor safeguards include broker disclosure requirements. FINRA requires the broker to disclosure events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on their public BrokerCheck reports. FINRA has recognized that recent research shows past regulatory and customer complaint issues can indicate future problems for brokers. 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.
Vance has been in the securities industry for more than 34 years. Vance has been registered as a Broker with Moloney Securities Co., Inc. 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.