A Financial Industry Regulatory Authority panel has awarded over $4.3M to investors in their elder financial fraud case against former First Allied Securities broker Anthony Diaz. The plaintiffs contend that he invested their retirement funds in high risk private placement investments that were unsuitable for them. They are alleging inadequate supervision, misrepresentation and omissions, unsuitability, fraud, and other violations.
Diaz is considered to be a rogue broker by the regulator, who barred him in 2015. He not only worked at 11 firms win 14 years, but also he appeared to have no problem getting another job whenever he was let go from a previous. Diaz’s BrokerCheck profile shows that he is named in 53 customer dispute and regulatory disclosures.
The arbitration award to the investors is over $1M in compensatory damages, more than $413K in legal fees, and $2.9M in punitive damages. They settled with First Allied Securities last year.
It is up to financial firms to properly supervise their brokers and make sure that they are not defrauding investors. This includes refraining from hiring financial representatives who already have a track record for fraud and negligence. Unfortunately, rogue traders continue to be hired back into the industry and investors end up suffering. Even if a brokerage firm that employed a rogue broker was not directly involved in the fraud, it too can be held liable.
At Shepherd Smith Edwards and Kantas, LTD LLP, our broker fraud law firm is here to help investors in fighting to recoup losses they’ve sustained due to the fraudulent, negligent, or careless actions of those in the industry. We have successfully gone up against the biggest firms on Wall Street to help make our clients financially whole again.
Elder Financial Fraud
Older investors are especially vulnerable to broker fraud. Rebounding from losing their retirement savings due to wrongdoing and negligence can be a rough and uphill road. Financial fraud can take a toll on a victim’s health and wallet.
Our elder financial fraud attorneys work with senior investors and their families throughout the US. Contact us today. This is not the type of case you want to pursue without an experienced broker fraud law firm lawyer by your side.
The FINRA Award (PDF)
More Blog Posts:
SEC Accuses Broker of Giving Some Customers Preferential IPO Access in Exchange for Over $1M in Kickbacks, Stockbroker Fraud Blog, January 2, 2018
FINRA Orders Citigroup to Pay $11.5M, Including at Least $6M to Investors, Over Inaccurate Stock Research Ratings, Stockbroker Fraud Blog, December 29, 2017
Ameriprise Ordered to Pay $8M Over F-Squared Alpha Sector Strategy Sales, Institutional Investor Securities Blog, November 8, 2017
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. The content of this Website contains general information and may not reflect current legal developments, verdicts or settlements. The Firm expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this Website. Read More.