FREE INITIAL CONSULTATION WITH ATTORNEYS WHO CAN HANDLE YOUR SECURITIES, COMMODITIES AND INVESTMENT PROBLEMS

The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result. Mr. Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case.

For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.

Mar 8, 2022

Vivian Wilcox of Edward Jones Reviews

DID VIVIAN ELISA WILCOX CAUSE YOU INVESTMENT LOSSES? Vivian Wilcox Of Edward Jones Has A Customer Complaint For Alleged Broker Misconduct Who is Vivian Wilcox of Edward Jones? Vivian Elisa Wilcox, with CRD# 3188196, has had a lengthy career in the brokerage and investment advisory sectors, spanning over 24 years, with a single firm, Edward Jones (CRD# 250). Despite the extensive experience, this broker’s career has not been without controversy. Wilcox has passed three exams, including the Series 63, Series 7, and SIE examinations, and is licensed in 12 states as both a Broker (B) and Investment Adviser (IA). The tenure at Edward Jones as a broker started on April 20, 1999, and as an investment adviser since October 3, 2014. The long-standing affiliation with just one firm, while indicative of stability, is overshadowed by the presence of a significant disclosure in their record.. Vivian Wilcox Customer Complaints and Reviews Customer Dispute (6/6/2019): This significant dispute involved allegations of elder abuse and coercion by a non-affiliated individual, leading to unauthorized changes in beneficiary designations. The claimant alleged that Wilcox, along with Edward Jones, failed to prevent these questionable transactions, acting on what were claimed to be direct instructions from the decedent. Despite denying the allegations, a settlement was reached for $290,000 against a damage request of $2,500,000. This disclosure raises serious concerns regarding the broker’s due diligence and ethical conduct, particularly in protecting vulnerable clients’ interests. Vivian Wilcox Red Flags & Your Rights As An Investor Of course, Vivian Wilcox did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Vivian Wilcox at Edward Jones on alert to review carefully the activity and performance of their accounts and question whether Vivian Wilcox has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Edward Jones also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At Edward Jones Due To Vivian Wilcox If you have questions about Edward Jones and/or Vivian Wilcox and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Mar 8, 2022

James Loessberg of Raymond James Financial Services

DID JAMES MICHAEL LOESSBERG CAUSE YOU INVESTMENT LOSSES? James Loessberg Of Raymond James Financial Services And Raymond James Financial Services Advisors Has A Customer Complaint For Alleged Broker Misconduct Who is James Loessberg of Raymond James Financial Services? James Loessberg (CRD #2140266) who is currently registered with Raymond James Financial Services, Raymond James Financial Services Advisors and located in Bozeman, Montana is a subject of one of our many securities industry sales practice abuse investigations. James Loessberg Customer Complaint James Loessberg has been the subject of at least one customer complaint that we know about, which was filed in the last year to recover investment losses. The allegations made in the FINRA reported customer complaint for investment losses were the advisor did not follow instructions to move investments to a fixed interest account. James Loessberg’s customer complaint was settled in favor of the investors. James Loessberg Red Flags & Your Rights As An Investor Of course, James Loessberg did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of James Loessberg at Raymond James Financial Services and Raymond James Financial Services Advisors on alert to review carefully the activity and performance of their accounts and question whether James Loessberg has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Raymond James Financial Services and Raymond James Financial Services Advisors also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At Raymond James Financial Services Due To James Loessberg If you have questions about Raymond James Financial Services, Raymond James Financial Services Advisors, and/or James Loessberg and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Mar 4, 2022

James Thomas Booth Formerly With LPL Financial

UPDATED ON: December 4, 2020 DID JAMES THOMAS BOOTH CAUSE YOU INVESTMENT LOSSES? James Thomas Booth Formerly With LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co.Has 30 Customer Complaints For Alleged Broker Misconduct In the Past 2 Years Who is James Thomas Booth Formerly With LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. James Thomas Booth (CRD# 1906145) who was registered with LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. and located in Norwalk, Connecticutis a subject of one of our many securities industry sales practice abuse investigations.  Prior to LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co., James Booth was registered with 3 other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. Broker Misconduct In his career, James Booth has been the subject of 36 customer complaints that we know about, 30 of those complaints were filed in the last year to recover investment losses. All of James Booth’s recent customer complaints were settled in favor of investors. There is currently 1 pending customer complaints filed against James Booth’s former employer Cadaret, Grant & Co. for investment losses caused by his alleged misconduct. Allegations Against James Booth The allegations made in the last 30 FINRA reported arbitration claim settlements and pending complaints for investment losses arise out of an alleged Ponzi scheme.  James Booth was indicted and pled guilty to one count of securities fraud. In addition, he has been enjoined and/or permanent barred from acting as a securities broker for his alleged misconduct. According to FINRA,  James Booth consented to the permanent bar sanction, without admitting or denying the allegations, for converting at least $1,000,000 of  investor funds from multiple customers who gave him funds to invest on their behalf, however, he allegedly deposited the funds into an account he controlled and, used the funds for his personal use. James Booth Red Flags & Your Rights As An Investor The allegations made by customers are red flags which should put all current and former customers of James Booth at LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. on alert to review carefully the activity and performance of their accounts and question whether James Booth has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At LPL Financial, Invest Financial Corporation and Cadaret, Grant & Co. If you have questions about a LPL Financial, Invest Financial Corp. and Cadaret, Grant & Co. and/or James Booth and the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889 or locally at 561-338-0037.

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Jan 20, 2022

Jeffrey Still of NYLife Securities LLC

DID JEFFERY W. STILL CAUSE YOU INVESTMENT LOSSES? Jeffery W. Still of NYLife Securities LLC Has One Customer Complaint For Alleged Broker Misconduct Who is Jeffery W. Still of NYLife Securities LLC? Jeffery Still (CRD #6040892) who is currently registered with NYLife Securities LLC and located in Granby, Massachusetts is a subject of one of our many securities industry sales practice abuse investigations. Prior to NYLife Securities LLC, Jeffery Still was associated with other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. Jeffery Still Customer Complaint Jeffery Still has been the subject of at least one customer complaint that we know about. The allegations made in the FINRA reported customer complaint for investment losses were that the claimant alleges that a financial plan rifle with unsuitable, high commission products was created for him. Jeffery Still’s customer complaint was settled in favor of investors. Jeffery Still Red Flags & Your Rights As An Investor Of course, Jeffery Still did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Jeffery Still at NYLife Securities LLC on alert to review carefully the activity and performance of their accounts and question whether Jeffery Still has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at NYLife Securities LLC also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At NYLife Securities LLC If you have questions about NYLife Securities LLC and/or Jeffery Still and the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Jan 20, 2022

Michael Norman of NYLife Securities LLC

DID MICHAEL ANDREW NORMAN CAUSE YOU INVESTMENT LOSSES? Michael Andrew Norman formerly with NYLife Securities LLC Has 3 Customer Complaints For Alleged Broker Misconduct Who is Michael A. Norman formerly with NYLife Securities LLC? Michael Norman (CRD #2092589) who was formerly registered with NYLife Securities LLC and located in Reno, Nevada is a subject of one of our many securities industry sales practice abuse investigations.   Michael Norman is no longer employed with NYLife Securities LLC since he was permanently barred by FINRA from further association with any member firm were allegedly not cooperating with an investigation into allegations that he loaned money to a customer, so that the customer could purchase securities. NYLife Securities LLC Broker Misconduct In his career Michael Norman has been the subject of 3 customer complaints that we know about, one of those complaints were filed in the last 2 years to recover investment losses. Two of Michael Norman’s 3 customer complaints were settled in favor of investors. The other customer complaint filed against Michael Norman’s former employer NYLife Securities LLC for investment losses caused by his alleged misconduct was denied by the company and the customer is not yet taken any further action. Allegations Against Michael Norman A sample of the allegations made in the FINRA reported arbitration claim settlements and pending complaints for investment losses are as follows: Customer alleged that Michael Norman made an unsuitable recommendation to invest in a variable annuity due to the mortality and expense and investment protection of fees incurred over the life of the product. Customer alleged that Michael Norman misrepresented the rate of return, failed to disclose associated fees, and further provided unsuitable investment advice to make a mutual fund transaction. Customer alleged that Michael Norman failed to adequately disclose the annual fees and surrender charges associated with a variable annuity transaction. Further, that the investment was an unsuitable one in light of his investment profile, liquidity needs. Michael Norman Red Flags & Your Rights As An Investor Of course, Michael Norman did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Michael Norman at NYLife Securities LLC on alert to review carefully the activity and performance of their accounts and question whether Michael Norman has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at NYLife Securities LLC about Michael Norman also raises questions about its supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At NYLife Securities LLC If you have questions about NYLife Securities LLC and/or Michael Norman and the management or performance of your accounts, and, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Jan 20, 2022

Richard Rokala of The Oak Ridge Financial Services Group, Inc

DID RICHARD WILLIAM ROKALA JR CAUSE YOU INVESTMENT LOSSES? Richard William Rokala Jr with The Oak Ridge Financial Services Group, Inc. Has 3 Customer Complaints for Alleged Broker Misconduct in the Past 2 Years Who is Richard W. Rokala Jr with The Oak Ridge Financial Services Group, Inc.? Richard Rokala (CRD #2646330) who is currently registered with The Oak Ridge Financial Services Group, Inc. and located in Golden Valley, Minnesota is a subject of one of our many securities industry sales practice abuse investigations.   Prior to The Oak Ridge Financial Services Group, Inc., Richard Rokala was associated with Dougherty & Company, LLC and 5 other investment advisory and brokerage firms with a history of customer complaints and securities industry regulatory problems. The Oak Ridge Financial Services Group, Inc. And Dougherty & Co., LLC Broker Misconduct In his career, Richard Rokala has been the subject of 3 customer complaints that we know about, all of those complaints were filed in the last 2 years to recover investment losses. All of Richard Rokala’s 3 customer complaints were settled in favor of investors. Allegations Against Richard Rokala A sample of the allegations made in the FINRA reported arbitration claim settlements and pending complaints for investment losses are as follows: Claimants alleged unsuitable investment recommendations relating to over-the-counter stocks. The claimant alleges churning, unauthorized trading, unsuitable investment recommendations, and negligence relating to investments in corporate and municipal bonds, common stocks, and exchange-traded funds. The claimant alleges churning, unauthorized trading, unsuitable investment recommendations, and negligence in connection with the bond and stock transactions. Richard Rokala Red Flags & Your Rights as An Investor Of course, Richard Rokala did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Richard Rokalaat The Oak Ridge Financial Services Group, Inc. and Dougherty & Company, LLC on alert to review carefully the activity and performance of their accounts and question whether Richard Rokalahas engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at The Oak Ridge Financial Services Group, Inc. and Dougherty & Company, LLC also raises questions about supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor. File A Claim To Recover Your Investment Losses At The Oak Ridge Financial Services Group, Inc.  And Dougherty & Company, LLC If you have questions about The Oak Ridge Financial Services Group, Inc., Dougherty & Company, LLC and/or Richard Rokalaand the management or performance of your accounts please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

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Dec 15, 2021

Announcing 2021 Winner – Robert Wayne Pearce Investor Fraud Awareness Scholarship

As promised, today we are announcing the 2021 winners of the Robert Wayne Pearce Investor Fraud Awareness Scholarship. Over the course of the year, we received applications from over 30 students from schools around the country who all wrote quality essays about the dangers of investment fraud and how we can protect ourselves. It was a difficult decision to select just one student winner and so, in addition to the grand prize of $2,500, we have selected 5 other students who are being awarded consolation prizes of $100 each for their efforts and sharing their thoughts on investment fraud and how to protect ourselves. The winner of the $2500 scholarship is Karen Simpson, a student at Palm Beach State College, who wrote, among other things: Investment fraud is a very real and serious problem that happens more than you may realize. But it doesn’t have to scare you away from investing your money in fear of losing it. Learning about the different types of investment fraud and how to protect yourself from fraud, before you decide to invest, is extremely important! You could not only experience financial loss but suffer compromised identity, damaged credit, and emotional issues including rage, frustration, and fear. *** Knowledge is power, and so I also recommend you educate yourself by learning about general nature, mechanics and risks of different types of investments before you start investing. I find an excellent starting point to educate myself is Investopedia, www.investopedia.com. You can also find specific financial information, including, annual reports, prospectuses and offering circulars about companies recommended to compare what you were told about a recommended investment by searching the U. S. Securities and Exchange Commission Edgar website for information, www.sec.gov/edgar/search-and-access.  *** The easiest way to protect yourself is to use common sense, look for the red flags and ask questions. Follow a strict check list of do’s and do nots, if it sounds too good to be true, in most cases, it is. If you notice any red flags about an investment, avoid it, as well as the person making the recommendation. That “High Guaranteed Returns” pitch they love to give, don’t believe it. Every investment carries some degree of risk, which is generally reflected in the rate of return you are promised. The higher the return, the higher the risk! The winners of the $100 consolation prizes are as follows: India Bartram of the University of Syracuse, Syracuse, New York Jacob Paul of Villanova University –Charles Widger School of Law, Villanova, Pennsylvania  Kylie Fay of the University of South Alabama, Mobile, Alabama Natalia Capella of the University of Tennessee, Knoxville, Tennessee Rafael Whalen of John Paul The Great Catholic School, Escondido, California We thank all of the other applicants for their efforts, as well, and announce that the next scholarship to be awarded December 15, 2022 will be given to the student who writes the most thoughtful essay about whether they believe the Robinhood Markets, Inc. (“Robinhood”) Investment App is a good tool for novice investors or just game to take advantage of them and make money for the stock brokerage firm. We are interested in learning whether you think Robinhood platform is living up to the legend of Robinhood, who took from the rich and gave to the poor!

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Jul 9, 2021

Excessive Buying and Selling of Securities to Generate Commissions Is Called Churning – Is It Happening to You?

Many people often ask, Is churning illegal? The answer is yes. SEC regulations and FINRA rules prohibit the practice of making excessive purchases or sales of securities in investor accounts for the primary purpose of generating commissions, known as churning. Despite the illegality of churning, FINRA filed 190 arbitration actions for the year of 2020 through the end of December against brokers accused of the practice. If you suffered losses in your investment account as a result of excessive trading, contact a churning fraud lawyer to determine whether you are entitled to recover compensation.  What Is Churning in Finance? Churning, also known as excessive trading, takes on a new meaning in the financial industry that doesn’t have anything to do with butter. Excessive trading occurs when a broker makes multiple trades in a customer’s investment account for the primary purpose of generating high commissions. Churning often results in significant losses for investors. The SEC’s Regulation Best Interest, or Reg BI, establishes a standard of conduct for broker-dealers and their employees when recommending investments to retail customers. Reg BI requires brokers to act in the customer’s best interest and not place his or her own interests ahead of those of the investor. Churning is almost never in the best interest of the investor—even those with aggressive trading strategies. Signs Your Advisor Is Churning in Your Investment Account Churning stocks leads to substantial investor losses, especially in situations where it lasts for a long period of time. Many times, investors fail to recognize the indicators that their broker committed the crime of excessive trading until it is too late. There are a number of cautionary signs to look out for when you fear your financial advisor is excessively trading in your account. Unauthorized Trades Unauthorized trading occurs when a broker trades securities in your investment account without receiving prior authorization. If you have a discretionary investment account, your financial advisor has authorization to make trades in your account without seeking your approval for each transaction; however, your broker is still bound by the best interest standard. Excessive trading can be more difficult to detect with a discretionary account. Numerous unauthorized trades appearing on your account statement is a cause for concern. To recognize these transactions, you should review your account statement on a monthly basis and verify the information provided. If you observe unauthorized trades on your account statement, notify your broker and broker-dealer immediately.  Unusually High Trade Volume A high volume of trading activity in a short period of time can signify churning, especially for investors pursuing a conservative investment strategy. Pay special attention to transactions involving the purchase and sale of the same securities over and over. Attorney Robert Pearce has over 40 years of experience representing clients whose brokers’ misconduct caused financial losses. Mr. Pearce’s extensive experience enables him to recognize indicators of churning immediately and prove the amount of damages you suffered as a result of your broker’s misconduct.  Excessive Commission Fees Unusually high commission fees appearing on your account statement is another indication of excessive trading. If the commission fees jump significantly from one month to the next, or if one segment of your investment portfolio consistently generates higher commissions than any other segment, there is a chance your broker is churning your account. Account statements do not typically include fee amounts charged for each individual transaction. Thus, do not hesitate to contact your broker-dealer to request an explanation of the commissions charged to your account. If you feel you are being charged excessive fees in your investment accounts, contact The Law Offices of Robert Wayne Pearce, P.A., to discuss your options.  Contact Our Office Today for a Free Consultation Churning in the financial industry can result in monetary sanctions and even disqualification from the financial industry in extreme cases. The practice involves the manipulation and deception of investors that entrust their brokers to act in their best interest, warranting severe punishment. Robert Wayne Pearce has handled dozens of churning cases and can provide a complete review of your account statements to determine whether excessive trading occurred. Additionally, The Law Offices of Robert Wayne Pearce, P.A., employs experts that can perform a churning analysis of the trading activity in your account to establish concrete evidence that the practice occurred. We have the experience, expertise, and commitment to obtain the damages you deserve. Contact our office today for a free case evaluation.

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Jul 9, 2021

FINRA Know Your Customer Rule and Investment Suitability—How Does it Apply to You?

FINRA regulates the conduct of brokers in the securities industry to protect investors from suffering losses due to financial advisor misconduct. The agency formulates rules to outline the behavior expected of broker-dealers and financial advisors when dealing with their investment clients. Nevertheless, FINRA receives thousands of customer complaints every year alleging violations of FINRA Rules. FINRA Rule 2090, the Know Your Customer (KYC) rule, and FINRA Rule 2111, the suitability rule, mandate minimum knowledge requirements for brokers when making investment recommendations and commonly appear in these customer complaints.  If you suffered investment losses due to unsuitable investment recommendations, The Law Offices of Robert Wayne Pearce, P.A., can help you determine if your broker violated one of these rules. Contact our office today for a free consultation. FINRA Rule 2090: Know Your Customer Rule FINRA Rule 2090, or the Know Your Client rule, requires financial advisors to know the “essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer” when opening and maintaining a client investment account. The “essential facts” described in the rule include details that are required to: Service the account effectively; Satisfy any special handling instructions for the account; Understand the authority of anyone acting on the customer’s behalf; and Comply with applicable laws, regulations, and rules. The KYC rule protects clients from investment losses by requiring their financial advisor to learn detailed information about their personal financial circumstances. The rule protects financial advisors by outlining the essential information about customers at the outset of the relationship, prior to any recommendations. Additionally, the financial adviser receives notification of any third parties authorized to act on the customer’s behalf. The Know Your Client rule acts in tandem with the suitability rule, FINRA Rule 2111. The information learned by financial advisors through the KYC requirement factors into the analysis of whether an investment recommendation is suitable.  FINRA Rule 2111: Suitability Alleged violation of investment suitability requirements resulted in 1,220 customer complaints filed with FINRA in 2020 alone, down from 1,580 complaints in 2019. The suitability rule requires financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy is suitable for the customer. A financial advisor determines the suitability of a transaction or investment strategy through ascertaining the customer’s investment profile. Factors involved in a suitability analysis include the customer’s: Age, Investment experience, Financial situation, Tax status, Investment goals, Investment time horizon, Liquidity needs, and Risk tolerance. Numerous cases interpret the FINRA suitability rule as requiring financial advisors to make recommendations that are in the best interest of their customers. FINRA outlines situation where financial advisors have violated the suitability rule by placing their interests above the interests of their client, including: A broker who recommends one product over another to receive larger commissions; Financial advisors who recommend that clients use margin to purchase a larger number of securities to increase commissions; and Brokers who recommend speculative securities with high commissions because of pressure from their firm to sell the securities. Any indication that a financial advisor has placed his or her interests ahead of the client’s interest can support a claim for a violation of the suitability rule. Rule 2111 consists of three primary obligations: (1) reasonable basis suitability, (2) customer-specific suitability, and (3) quantitative suitability. Reasonable Basis Suitability Reasonable basis suitability requires a financial advisor to have a reasonable basis to believe, based on reasonable diligence, that a recommendation is suitable for the public at large. A financial advisor’s reasonable diligence should provide him or her with an understanding of risks and rewards associated with the recommended investment or strategy. A failure to comprehend the risks and rewards associated with a particular investment prior to recommending the investment to a client can result in allegations of misrepresentation or fraud. If a broker fails to perform reasonable diligence regarding either component, the financial advisor violates this obligation. Customer-Specific Suitability Customer-specific suitability involves considering the specific details about an individual customer to determine if a transaction or investment strategy is suitable. The financial advisor reviews the details outlined above to determine the suitability of a particular transaction or strategy for each customer. Quantitative Suitability The quantitative suitability element requires financial advisors to recommend transactions that are suitable when viewed as a whole, not only when viewed in isolation. This element aims to prevent financial advisors from making excessive trades in a client’s account solely for the purpose of generating commission fees. Factors such as turnover rate, cost-equity ratio, and use of in-and-out trading indicate that the quantitative suitability obligation was violated. What Constitutes “Reasonable Diligence”  FINRA’s suitability rule requires brokers to exercise “reasonable diligence” in attempting to obtain customer-specific information. The reasonableness of a financial advisor’s effort to obtain such information will depend on the facts and circumstances of each investment relationship. A financial advisor typically relies on the responses provided by the customer in compiling information relevant to the customer’s investment profile. Some situations may prevent a broker from relying exclusively on a customer’s responses, including times when: A financial advisor poses misleading or confusing questions to a degree that the information-gathering process is tainted; The customer exhibits clear signs of diminished capacity; or Red flags exist that indicate the information may be inaccurate. Additionally, the suitability rule requires brokers to consider any other information provided by the customer in connection with investment recommendations.  Hiring an Investment Loss Attorney Violation of FINRA Rules 2090 and 2111 result in significant financial losses for investors every year. If you suffered losses because of unsuitable investment recommendations, you have the right to seek compensation from the parties responsible for your losses.  Cases against brokers and registered investment advisors can be complex for attorneys without experience in securities law.  Robert Wayne Pearce has over 40 years of experience representing investors in disputes against financial advisors and broker dealers. Mr. Pearce has tried, arbitrated, and mediated hundreds of investment-related disputes involving complex securities and FINRA rule violations. In fact, Mr. Pearce serves...

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Dec 15, 2020

LPL Financial LLC Sued For Scott Lanza’s Sales Of REITs And BDCs

LPL Financial LLC (“LPL”) is a securities brokerage firm with offices in Boca Raton, Florida and elsewhere. It is regulated by Financial Industry Regulatory Authority (“FINRA”).  LPL offered and sold to Claimants the investments at issue in this arbitration, namely, non-traded Real Estate Investment Trusts and Business Development Companies through Scott Lanza (“Mr. Lanza”) an individual registered with FINRA as an “Associate Member” of LPL.  The brokerage firm LPL has been sued because it is vicariously liable for Mr. Lanza’s acts, omissions and other misconduct described more fully herein.

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