Unsuitable Investments & Unauthorized Trading in Elderly Investor Accounts
Two elderly and infirm investors in their mid-90s lost more than $1 million in approximately one year allegedly as the result of their financial advisor's unauthorized trading in very risky energy and heavy metal securities as well as below-investment grade bonds. While the broker in question had a history of customer complaints involving unauthorized trading and excessive risk, his broker-dealer appears to have done nothing to supervise the broker or the customer accounts.
Such an overconcentration of risky products in the portfolio of infirm senior investors whose investment horizon was extremely short and whose risk tolerance was low represents a clear breach of fiduciary duty and federal securities law regulating suitability between investors and investments.
Securities Litigation Broker Misconduct Law Firm
Green, Schafle & Gibbs filed its Statement of Claim against Respondents through FINRA's Dispute Resolution forum.
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