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Articles Tagged with unsuitable investments

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. 

Unsuitability & Overconcentration May Lead to Unnecessary Investor Losses in Preferred Stocks

If you are an investor in preferred stocks or preferred stock funds, you may have suffered losses as the preferred-stock market had dropped almost 5% since its mid-Feb peak. 

These stocks do carry some risk with them and they are not suitable for every investor. If you are wondering whether your investments were inappropriately recommended to you or your broker overconcentrated your portfolio with too many of them, contact our investor attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today. 

Brokerage Firm Made Unsuitable Investment Recommendations to An Inexperienced Investor

Our brokerage firm fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) have filed a Financial Industry Regulatory Authority (FINRA) arbitration against Morgan Stanley on behalf of an elderly Dallas, Texas investor.

The investor in question sustained over $500K in losses due to the unsuitable recommendations of structured products, Master Limited Partnerships (MLPs), other oil and gas equities, and investments governed by Harvest Volatility Management’s Collateral Yield Enhancement Strategy (CYES). 

National Securities Broker Investigated Over Unsuitable Investment Recommendations

Our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law firm) are looking into claims by investors who suspect that National Securities stockbroker Michael Burkoff recommended investments that were unsuitable for them. Burkoff is a registered representative with National Securities. He has been the subject of a number of customer complaints. 

Our seasoned securities fraud attorneys have been successful at representing investors from all over the United States in cases of broker fraud. If you are interested in finding out how you can recover investment losses, get in touch with us today. 

Fired Cetera Advisors Broker Accused Of Unauthorized Securities Sales

Our stockbroker fraud attorneys are speaking to former clients of former Cetera Advisors LLC broker, Roger Lee Owens that sustained substantial investment losses while working with him. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today to schedule your free, no-obligation case consultation. 

Cetera Advisors fired Roger Owens last year for allegedly taking part in unapproved private securities transactions. A few months later, the Financial Industry Regulatory Authority (FINRA) suspended Owens for a year, through August 2020, for the same reasons. 

If you are an investor that has lost money because of an unsuitable margin call in your investment account, you may have grounds for filing a Financial Industry Regulatory Authority (FINRA) arbitration claim to try and recover your losses. Unfortunately, a lot of investors may not understand what they are getting into when they open a margin account.

What is A Margin Account?

Margin accounts are not suitable for every investor, especially those that can’t handle too much risk. A customer that sets up with a margin account with a broker is indicating that he or she may want to borrow money later on down the road. With a margin account, you are essentially providing the securities and money in your margin account as collateral for this possible loan. Should you decide to borrow the money to buy securities, a broker is then allowed to sell your assets if necessary to fulfill the margin loan.

The Financial Industry Regulatory Authority (FINRA) has barred Wells Fargo (WFC) broker Edward O. Daniel, after he failed to participate in a probe into allegations that he made unsuitable investments for one client. Daniel, a Texas-based broker, was with Wells Fargo Advisers for seven years before he stepped down in September 2016. He was a longtime broker of 41 years.

Soon after Daniel resignation two years ago, Wells Fargo disclosed that a customer had filed an arbitration complaint accusing him of making unsuitable investments over a several-year period. The dispute was resolved for $225K. His BrokerCheck record documents that Daniel has been named in eight disclosures, all involving complaints by customers.

Now, FINRA is barring him because he would not cooperate in the self-regulatory authority’s investigation into the unsuitable investment allegations.

A Financial Industry Regulatory Authority securities arbitration panel ruled that Wells Fargo Advisors (WFC) must pay investor Anthony J. Pryor $357K related to purportedly unsuitable housing and energy investments. In his securities fraud claim, Pryor alleged negligent misrepresentation, negligent supervision, breach of fiduciary, and other causes. Wells Fargo denies Pryor’s allegations.

His advisor, Jeff Wilson, who was not named as a party in the securities arbitration case, has three customer disputes on his BrokerCheck record. One of the other claims that were settled for $250K also allegedly involving unsuitable investments.

Unsuitable Investments

Not every investment is suitable for every investor. Some investments may too be risky for certain investors or are not in alignment with their investment goals or financial needs. For example, many older retail investors that are about to retire will likely require a more conservative investment plan that a much younger, single investor.

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