FINRA Finds Ameriprise Financial Liable to Customer

Ameriprise Financial was sued by a customer in Case #12-3595 for breach of fiduciary duty, professional negligence, misrepresentation, material omission of fact and failure to supervise. In April 2013, an arbitration panel from the Financial Industry Regulatory Authority (FINRA) found in favor of the customer and awarded compensatory damages of $19,454, plus interest and some costs. The customer had sued for $23,462.

If you believe you are a victim of stockbroker fraud or negligence, you may be able to recover losses through FINRA arbitration which is much quicker and less costly than litigation in court. Most cases are done on a contingent fee basis and are generally completed in a year or less.

If you have questions or complaints about losses in your brokerage account, call us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Brokerage Firms Continue to Win Cases Against Their Former Brokers

For many years brokerage firms have customarily paid a bonus to a broker moving from one firm to another. A broker moving from firm A to firm B is generally compensated based upon the amount of the commissions and other credits he has earned during the prior 12-18 months at the firm he is leaving. The bonus is initially granted in the form of a loan that is forgiven based upon the number of clients the broker can convince to follow him from firm A to firm B and the amount of commissions he earns.

If agreed upon goals are met (in other words if the broker generates a set amount of commissions and fees from the customers)  the loan is forgiven over a specified number of years. If the broker leaves, is fired or quits the industry and the loan has not been entirely forgiven, the broker is required to repay the outstanding balance. If the broker does not repay, the firms generally sue the broker for the outstanding balance. It is typical for the broker to make some type of counterclaim against the firm claiming poor working conditions, etc.

Recently there were several of these types of cases tried to conclusion:

  • UBS v James Martin Meis-Case # 11-3898- UBS sought $1.2 million plus interest, attorney fees and costs. Meis requested dismissal of the case and damages in excess of $250,000, punitive damages and other relief. The FINRA panel awarded total damages of $1.4 million.
  • Morgan Stanley v Julie Lynn Sheppard– Case #12-1767- Morgan Stanley sought repayment of $232,409 on a promissory note plus interest and fees. The panel awarded the requested amount plus interest.
  • LPL Financial v Brenda R. Aslyn– Case #12-3529- LPL Financial sued Aslyn on a note seeking $35,000 plus interest and other relief all of which was awarded in favor of LPL.

If you have questions or complaints about losses in your brokerage account, call us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Quest Capital Strategies Broker George R. Hunt Discharged for Borrowing from Firm Client

Quest Capital Strategies discharged registered representative George R. Hunt after a firm client claimed that Hunt had borrowed money at 12% interest and failed to repay it. In January 2013 FINRA suspended Hunt for one year and required that Hunt make restitution to the customer. FINRA alleged that he had borrowed $63,500 and had not repaid any of the debt.

In addition, FINRA alleged that Hunt was aware of the policies of the firm prohibiting borrowing money from customers and that Hunt had represented in annual compliance questionnaires that he had not borrowed any funds from customers. In addition, on separate occasions Hunt recommended that the customer liquidate securities in her account with the firm and use the proceeds to fund some of the loans made to Hunt. According to FINRA, Hunt had no reasonable basis for recommending these transactions.

Hunt previously worked for LPL Financial (Linsco Private Ledger) and A.G. Edwards & Sons, Inc.

If you have questions about your stock brokerage account, contact us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

FINRA Fines Merrill $1 Million and $320k Restitution

On April 16,2013, FINRA announced resolution of an action against Merrill Lynch for failing to provide best execution in certain customer transactions involfing non-convertible preferred securities executed on one of its proprietary order management systems, the ML BondMarket. In addition FINRA found that Merrill did not have an adequate supervisory system in place.

Merrill was fined $1.05 million and ordered to pay restitution to customers who did not receive best execution on their bond trades of more than $323,000. Firms are required to use reasonable diligence to ensure that the trade is as favorable as possible to the customer under current market conditions. FINRA alleged that Merrill executed 12,259 transactions at prices inferior to the National Best Bid and Offer (NBBO).

If you have questions about your stock brokerage account, contact us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900