Shepherd Smith Edwards and Kantas Is Investigating

FINRA suspended former Realta Equities broker Gilbert Conrad after discovering he secretly paid clients $139,000 to settle disputes outside his firm, adding to a history of customer claims alleging over $2 million in losses from unsuitable recommendations and overconcentration. Securities law firm Shepherd Smith Edwards and Kantas is currently investigating claims on behalf of Conrad’s former clients to evaluate grounds for filing FINRA arbitration recovery lawsuits.

The Financial Industry Regulatory Authority (FINRA) has suspended previously registered New York broker Gilbert Russell Conrad (G. Russell Conrad) after finding that he paid two clients $139,000 to settle complaints without telling his broker-dealer of record at the time. Brokers are not allowed to privately resolve customer disputes. The secret client payments were discovered after the two customers went on to file FINRA arbitration claims.

Gilbert Conrad’s BrokerCheck CRD lists seven customer disputes that were either settled or remain pending (for almost $2M) related to unsuitability, overconcentration, misrepresentations and omissions, and more. Conrad was most recently a Realta Equities broker. Realta Equities was previously known as Coastal Equities. Before that, he was a registered financial advisor with Arkadios Capital, Independent Financial Group, and seven other broker-dealers during his 28 years in the industry.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is investigating claims of investor losses involving former customers of G. Russell Conrad.

Why Do Many Investors Sue Their Broker Over Unsuitable Investment Recommendations?

Brokerage firms have a duty to properly oversee customers’ accounts, as well as supervise the activities of their registered representatives. When a failure to supervise enables unsuitable investment recommendations, this can be grounds for suing the financial adviser and the firm.

Common Reasons Cited for Unsuitable Investment Recommendations:

• The recommendation was inappropriate given the customer’s age, risk tolerance level, financial goals, income, net worth, time horizon, tax status, financial situation, and liquidity needs.
• The financial advisor deliberately chose products that paid higher commissions even if this was an investment that wasn’t in line with the investor’s objectives.
• Overconcentration of the investor’s account with too much of one asset or asset class is considered an unsuitable investment strategy for most retail investors.
• The broker sold unapproved, unvetted or unregistered securities to a customer.
• Excessive trading, which is also known as churning, in a customer’s accounts for the purpose of earning more commissions.
• Unnecessary mutual fund switching, which can result in more fees paid to the broker.
• Placing conservative investors in risky, volatile investments.
• The broker-dealer failed to have the proper procedures and rules in place to prevent unsuitable investment recommendations.
• Opting to apply an aggressive strategy to the portfolio of a customer who doesn’t want to take on any risk.

What Should I Do If I’m an Investor Who Is the Victim of Unsuitable Investment Recommendations by Gilbert Conrad or Another Financial Advisor?

Shepherd Smith Edwards and Kantas can evaluate whether you have legal grounds for suing your broker or their firm. Our veteran securities law firm represents investors against brokerage firms in FINRA arbitration.

Call (800) 259-9010 or contact us online today to schedule your free case consultation.