Another National Securities Broker Is Accused of Making Inappropriate Recommendations
Frank Avallone, a National Securities broker since 2015, is currently the subject of two pending customer complaints accusing him of making unsuitable investment recommendations that resulted in six-figure losses for each claimant. He is not the only registered representative from this firm accused of suitability issues.
Unsuitable investments are any recommendation that is inappropriate for the investor. Such a recommendation is contrary to a broker’s duty to only make investment recommendations that are appropriate for the customer as it pertains to their age, financial resources, investing experience, and risk tolerance level.
Unfortunately, unsuitable investment recommendations happen all the time, placing investors in unnecessarily vulnerable positions that can lead to significant financial losses. At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our broker fraud lawyers are here to help investors get back these losses.
Two FINRA Arbitration Complaints Against Avallone Are Pending
The customer of the most recent investor fraud complaint against Avallone, filed in early 2020, seeks $140K in damages. A second pending complaint from late last year is requesting over $209K in damages. According to the National Securities registered representative’s BrokerCheck record, two earlier customer complaints naming him were both settled.
Frank Avallone, who has worked in the securities industry for 14 years, was also previously a registered broker with several other firms including:
- Newbridge Securities Corp.
- Global Arena Capital Corp.
- First Midwest Securities Inc.
- Maxim Group, LLC
- Eastbrook Capital Group, LLC.
Both Global Arena Capital and Eastbrook Capital Group have since been expelled by the Financial Industry Regulatory Authority (FINRA).
According to FINRA rules, brokerage firms are responsible for supervising a broker’s activity during their registered time with the firm. In cases where a broker-dealer fails to do this, the firm may be liable for any investment losses suffered by the broker’s customers. Therefore, it may be possible for Avallone’s clients to file a claim against National Securities.
Report Found National Securities Had Significant Number of Brokers With Red Flags
In a 2017 Reuters report, National Securities was identified as one of 48 brokerage firms in which at least 30% of its brokers have red flags in their history. The report noted that, specifically, 35% of National Securities’ brokers had been cited in legal or regulatory disputes or had experienced financial issues. FINRA has fined the firm over two dozen times since 2000.
Our broker negligence attorneys have also been looking into claims involving National Securities stockbroker Michael Burkoff. He too is accused of making unsuitable investment recommendations.
If you suffered losses while Michael Burkoff, Frank Avallone, or any other National Securities broker handled your investments, contact SSEK Law Firm today to speak with one of our unsuitable investment fraud lawyers.