Claimant Alleges Overconcentration, Unsuitability, Failure to Supervise
A Portland, Oregon semi-retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. and is seeking up to $500K in damages. The investor contends that a former financial advisor from the firm overconcentrated most of her retirement funds in illiquid private placements and caused her significant financial losses.
Our Portland investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in her private placement fraud case against Western International Securities.
If you are someone who worked with a Western International Securities broker and you are wondering whether your losses may be due to unsuitability, overconcentration, failure to supervise, broker fraud, or negligence, call (971) 285-3075 or (800) 259-9010 today.
Semi-Retiree is Inexperienced Investor Who Wanted to Save For Retirement
This investor, an unsophisticated investor, contends that she wanted a sound financial plan that was low risk and would generate a safe income stream for her.
Instead, her Western International Securities broker employed a very aggressive portfolio strategy that was unsuitable, lacked diversification, and was improperly allocated. Most of her retirement funds were placed in private placement offerings even after the financial advisor promised her a solid plan that brought minimal risk.
Private placements tend to be risky, illiquid investments. They are unregistered securities and should only be sold to accredited, sophisticated customers who can understand these risks. This type of investment should never have been recommended to the claimant. Not only that, but misrepresentations and omissions were made to this investor.
This individual is no longer with Western International Securities and has left the industry. However, he appears to have favored private placements, non-traded real estate investment trusts (non-traded REITs), and other risky, illiquid products.
Such investments usually earn brokers higher commissions than safer, liquid investments and Western International Securities should have been aware of his recommendation tendencies and ensured he only recommended such investments for those whom they were suitable.
It was this broker-dealer’s duty to properly supervise this financial advisor and his activities with all of his customers. Brokerage firms can be held liable for the actions of their registered representatives if losses for customers result.
This investor is also alleging breach of contract, as well as violations of securities laws and consumer protection statutes. She is requesting $100K to $500K in damages for the losses she sustained.
Experienced Portland Securities Fraud Law firm
Our Portland, Oregon investment fraud attorneys represent retail investors, retirees, high-net-worth individual investors, and intuitional investors in their FINRA arbitration claims against broker-dealers and their financial advisors.
SSEK Law Firm has fought for investors all over the United States for over 30 years and we have recovered many millions of dollars on their behalf.
In Oregon, call our lawyers at (971) 285-3075. Elsewhere in the US, call us at (800) 259-9010 or contact us online today to request your free, no-obligation case consultation so that we can help you explore your legal options.