Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Ronald Bucher (Bucher), previously associated with San Blas Securities LLC, has at least 7 disclosable events. These events include 6 customer complaints, one regulatory event, alleging that Bucher 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 $50,000.00 on June 10, 2024.
The allegations refer to activity in the clients account from 2019-2023 when Bucher was terminated from Pinnacle Investments. Client claims investments were unsuitable and not authorized. Additionally client claims Bucher did not properly explain the investments that were in the account which led to losses in the account.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $2,000,000.00 on April 03, 2024.
Claimants assert claims of breach of fiduciary duty, breach of contract, violation of Illinois Securities Act, negligence/negligent misrepresentation/omission, fraud, restitution, and negligent supervision relating to unspecified investments. 7/1/2018 to 7/1/2023
FINRA BrokerCheck shows a pending customer complaint with a damage request of $2,000,000.00 on April 03, 2024.
The clients allege that Bucher engaged in churning, unauthorized trading and unsuitable investments. The time period is July 2018 to July 2023.
FINRA BrokerCheck shows a final customer complaint on December 21, 2023.
Without admitting or denying the findings, Bucher consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA in connection with its investigation into the allegations his member firm made in a Form U5 filing. The findings stated that allegations included communicating with customers via text messages and personal email. Although Bucher produced some information in response to the request, he failed to produce other information, including the requested customer communication.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $77,772.32 on August 09, 2023.
Client alleges investments were not in line with stated objective and transactions were not authorized. Client states this activity spans the length of the relationship with the representative,
FINRA BrokerCheck shows a pending customer complaint on August 01, 2023.
Customer alleges account was not managed in a manner consistent with stated objectives and transactions were made without their knowledge. Client indicated this has been consistent throughout the relationship with the representative.
FINRA BrokerCheck shows a pending customer complaint on June 06, 2023.
On 6/6/23 Pinnacle compliance spoke to client as a followup to client e-mail referencing a decline in bis account values. During this call no formal complaint was made by the client nor was any claim of damages made. Client only reiterated his decline in value as well as a decline in verbal communication during 2022/23. After further investigation Pinnacle determined that the broker had been primarily communicating about the accounts with this client through text instead of verbally. That is a violation of company policy and the broker was terminated. As of the last call made by Pinnacle compliance to the client no formal complaint or damage claim has been made by the client outside of the use of unregulated texting.
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.
Bucher has been in the securities industry for more than 34 years. Bucher has been registered as a Broker with San Blas Securities LLC since 2023.
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.