Massachusetts Investor Files Stock Loss Claim Against B Riley Wealth Management (FKA National Securities Corp. )
Claimant Is Suing For Up to $1M in Damages Involving Intelsat Stock (INTEQ) And Alleges Pump and Dump, Overconcentration By the Broker
In the FINRA lawsuit that the Shepherd Smith Edwards and Kantas Broker Misconduct Law Firm (investorlawyers.com) is representing, an elderly investor is suing B Riley Wealth Management (FKA National Securities). Our client, who is from Massachusetts, contends that his then-advisor Ali Barry Mahlooji, overconcentrated his account in Intelsat Sa(INTEQ) stock and took part in what appears to be an alleged pump and dump scam.
The stock, which averages around $25/share at purchase, was eventually sold at a huge loss. Presently, Intelsat’s stock is worth under a penny a share.
Our client, an inexperienced investor, had never invested heavily in a single stock before then. He contends that Mahlooji was the one who started making cold calls to him. Despite rebuffing the broker several times, Mahlooji kept calling.
In all likelihood, Intelsat was a house stock that broker-dealers hold in inventory. This type of stock gives a broker-dealer the chance to offer extra remuneration to its sales force in the nature of mark-ups for purchases and mark-downs for sales.
As the stock rose in price, this investor’s broker recommended that the customer buy more. He made the same recommendation when the stock went down. Margin was used in this investor’s account.
We believe that his then-financial advisor was grossly negligent, perhaps even behaved fraudulently through an alleged pump and dump scam. In this FINRA lawsuit, our client is claiming unsuitability, financial advisor fraud, misrepresentations and omissions, breach of fiduciary duty, failure to supervise, and more.
Mahlooji, who has worked for nearly two decades in the industry, was a National Securities broker from 2012 to 2019. Since then, he has been a registered representative with PHX Financial. Ali Mahlooji’s CRD notes at least four customer disputes besides this one that have been brought over the past few years. All of the FINRA lawsuits allege unsuitable recommendations. Mahlooji denies any wrongdoing.
What Can You Do If You Suffered Losses While Working with A B Riley Broker?
B Riley acquired National Securities Corp in 2021. This means that any broker misconduct claims involving National Securities Corp. that were filed within the statute of limitations are now B Riley’s responsibility.
The Shepherd Smith Edwards and Kantas Broker Misconduct Law Firm is representing other investors against B Riley, including one NY retiree who worked with then-National Securities broker Mark Angelo Gassosso (now with Arete Wealth Management).
That claimant is requesting up to $1M and alleging gross mismanagement and self-dealing. We are also representing a Miami investor who is suing B Riley over allegedly unsuitable alternative investment recommendations. That client is pursuing up to $500K in damages.
You want to retain a Broker Misconduct Law Firm that is highly knowledgeable, not just about the investments in question, but also about the broker-dealer under scrutiny.
Our broker negligence lawyers are also looking into these structured products that may have been unsuitably sold by B Riley Financial registered representatives:
NASDAQ: RILY
NASDAQ: RILYP
NASDAQ: RILYL
NASDAQ: RILYM (Senior Notes due 2025)
NASDAQ: RILYG (5% Senior Notes due 2026)
NASDAQ: RILYK (5.5% Senior Notes due 2026)
NASDAQ: RILYN (6.5% Senior Notes due 2026)
NASDAQ: RILYZ (5.25% Senior Notes due 2028)
NASDAQ: RILYT (6% Senior Notes due 2028
Over the decades, we have represented thousands of investors against financial advisors all over the US. More than 90% of our clients have received full or partial financial recovery through our dedicated efforts.
Contact Our Broker Misconduct Law Firm Today:
Call (800) 259-9010 to schedule your free, initial case assessment or fill out this form.