New Jersey Failure to Diversify Securities Account Attorney
New Jersey has hundreds of stock brokerage firms and investment advisory offices. With so many stock brokerage firms and investment advisory offices, comes the potential for their stockbrokers, financial advisors, and other representatives to mismanage securities and other investment accounts by failing to employ sound asset allocation and diversification investment principles and engage in all sorts of misconduct which violates Federal and New Jersey securities laws and Financial Industry Regulatory Authority (FINRA) rules and stock brokerage firms policies and procedures.
For example, Douglas Finlay Jr. of Point Pleasant Beach, New Jersey submitted a AWC to FINRA under the allegations that he recommended and effected an unsuitable transaction in a customer’s account. FINRA alleged that Finlay recommended and executed an unsuitable transaction in the account of a Cadaret Grant customer by over-concentrating the client’s assets in an illiquid real estate investment trust (REIT) and failed to adequately disclose information to the customer in regard to the REIT. In 2009 Finlay allegedly recommended to a client that she invest 100% of her retirement funds in a REIT. The client was 55 years old, had an investment objective of “growth and income” and had a moderate risk tolerance. FINRA alleged that Finlay failed to disclose information in regard to the REIT, including that the investment was illiquid and highly speculative. At the time, procedure at Cadaret Grant limited the amount of a customer’s assets that could be invested in REITS to “10% of the investor’s net worth”. In July 2009, the customer invested nearly $116,625 which constituted 100% of the client’s retirement funds and nearly 100% of her liquid net worth, in the REIT. Finlay received $6,639.23 in commissions from the customer’s investment. FINRA further alleged that Finlay falsified the clients account form. FINRA claimed that Finlay handwrote on the account form that the client’s net worth was $1,355,000 and that her annual income was $150,000. However, the client’s actual net worth was approximately $135,000 with an approximate annual income of $70,000. FINRA found that Finlay’s recommendation to invest her retirement savings in a single REIT was unsuitable for her moderate risk tolerance and investment objectives. For his alleged violations, Finlay was ordered to pay a fine of $15,000, pay disgorgement in the amount of $6,639.23 and suspended from association with any FINRA member in any and all capacities for a period of 18 months.Experienced Lawyers Who Handle Over-Concentration Of Securities Claims In FINRA Arbitrations Throughout New Jersey and Nationwide
Are you a New Jersey investor who has suffered significant losses in your stock brokerage and investment accounts? Did your New Jersey stockbroker or investment advisor over-concentrate your securities account investments in a single asset class of only equities, fixed income or real estate investments like REITs? Did your stockbroker or investment advisor only recommend that you invest in one sector like the oil and gas or one geographic area like Puerto Rico? The failure to diversify and over-concentration of accounts in any single asset class or one type of investment sector or geographic area can lead to a disaster if the one asset class, sector or area collapses. If so, you will need to have representation from an experienced, highly rated and nationally recognized FINRA arbitration securities law attorney—an attorney who knows FINRA rules and procedures inside and out and how to handle these FINRA arbitration cases involving the failure to diversify and over-concentration of accounts in one asset class, sector or geographic area and other complex legal issues.
By hiring a top rated attorney like Robert Wayne Pearce with over 40 years of experience practicing securities law on both sides of the table in FINRA arbitration proceedings, you will clearly see that Attorney Pearce doesn’t just handle over-concentration of securities in accounts and other investment mismanagement cases—he aggressively represents investors and is one of the best lawyers to recover your investment losses for the failure to diversify investments in your account and all types of stockbroker misconduct in FINRA arbitration proceedings!
At The Law Offices of Robert Wayne Pearce, P.A., we represent investors not only in securities over-concentration cases but all kinds of securities law and investment disputes in FINRA arbitration and mediation proceedings. We handle a wide range of practice areas such as fraud and misrepresentation, breach of fiduciary duty, failure to supervise, and unsuitable recommendations. Attorney Pearce and his staff represent investors throughout New Jersey, and across the United States on a CONTINGENCY FEE basis, which means you pay nothing - NO FEES-NO COSTS - unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
The Law Offices of Robert Wayne Pearce, P.A. are highly experienced lawyers who successfully handle claims against stockbrokers for failure to diversify securities accounts and over-concentration of any investment in any account but other securities account mismanagement cases in FINRA arbitration proceedings, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by an attorney with over 40 years of experience and success in all kinds of securities law and investment disputes in FINRA arbitrations serving New Jersey citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.