Did You Suffer Mutual Fund Losses While Working With Suspended Florida Broker John Wigmore Reilly III?
Ex-Securities Research Financial Advisor Accused of Best Interest Violations
Shepherd Smith Edwards and Kantas Mutual Fund Switching Loss Attorneys (investorlawyers.com) are offering free, no obligation case assessments to customers of former stockbroker John Reilly III. The Financial Industry Regulatory Authority (FINRA) suspended him for three months after finding that he purportedly violated customers’ best interests when he allegedly engaged in mutual fund switching that resulted in excessive sales fees for two older investors.
According to FINRA, between 2018 and 2021 Reilly “recommended and effected” more than two dozen short-term switches of Class A mutual funds without having reasonable grounds for thinking that these were appropriate investment recommendations. As a result, two retirees, who had moderate risk tolerance levels, paid nearly $41K in excess sales fees. The self-regulatory organization (SRO) also said that Reilly violated its rules regarding standards of business conduct and suitability.
Class A mutual funds are meant to be held long-term and usually charge significant up front sales fees. They are generally unsuitable for short-term trading. One reason is that it takes a long time for a Class A mutual fund share investor to be able to earn back the front end load charged to them. Mutual fund switching is what happens when a customer sells their shares and then reinvests the money in a different mutual fund, which leads to more charges and commissions for the financial advisor.
FINRA contends that with the mutual fund switches that Reilly has come under scrutiny over, he did not conduct the necessary due diligence to make sure that the particular mutual fund switching he engaged in helped to fulfill each customer’s objectives. Otherwise, he might have made other, more reasonable investment recommendations, including switching mutual funds within the same fund family, which would have been less costly for the investors.
The alleged broker misconduct occurred while Reilly was a Securities Research financial advisor. He worked 28 years in the industry.
Our Mutual Fund Switching Loss Attorneys Represent Investors Who Have Suffered Mutual Fund Losses
While many investors often think of mutual funds as safe and low-risk, that isn’t always the case especially when the market becomes volatile. There are also the mutual fund losses that occur because of due diligence failures, misrepresentations and omissions, or excessive mutual fund trading by a financial advisor.
Even if the brokerage firm had no idea that their registered representative was engaging in some type of mutual fund fraud, an investor who was harmed may still be able to pursue damages for their losses. Shepherd Smith Edwards and Kantas represents mutual fund investors in holding broker-dealers and their financial advisors liable.
We know how to maximize a clients’ chances for full financial recovery. Our stockbroker misconduct attorneys have been fighting for retail investors, retirees, wealthy investors, accredited investors, and institutional investors for over 30 years.
To find out what it is like working with our Mutual Fund Switching Loss Attorneys, visit our testimonials page. We genuinely care about our clients and have dedicated our law practice to helping make investors financially whole again.
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