overconcentration

RBC Capital Markets to Pay $1M Over Unsuitable High-Yield Bond Concentration in Customer Accounts

Published on: December 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

RBC Capital Markets Settlement With FINRA Includes a Fine and Restitution

RBC Capital Markets has reached an agreement with FINRA in which the broker-dealer will pay $1M to resolve allegations of overconcentration in customers’ accounts involving high-yield bonds. Without denying or admitting to the self-regulatory organization’s (SRO’s) findings, RBC consented to a censure, a $550K fine, and more than $456K in restitution.

According to FINRA, the brokerage firm did not identify over 100 client accounts with conservative profiles that should have been reviewed for a possible unsuitable concentration of high-yield bonds.

Customers of Ex-Arkadios Capital Broker Marc Korsch Claim $2.8M in Damages

Published on: November 18, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Arkadios Capital Financial Advisor is Accused of Unsuitability & Concentration

A former broker and investment advisor, Marc Frederick Korsch, is currently named in several pending customer disputes in which, as of November 2021, the claimants are still seeking to recover $2.8M in damages.

Korsch was an Arkadios Capital financial advisor for six months until early September 2021. The investor claims naming him appear to be from his time with other broker-dealers including:

RBC Capital Markets Broker Joseph Chu Accused of Overconcentrating Customers’ Accounts in Oil and Gas Investments

Published on: December 18, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Connecticut Investment Advisor is Also Part of RBC Team Chu, Philipps, and Associates

Joseph Ijong Chu, an RBC Capital Markets stockbroker, has been named in a number of customer disputes this year. Chu is also a registered investment advisor with the broker-dealer. He is part of the RBC team known as Chu, Phillips, and Associates, which offers products and services through City National Bank in Stamford, Connecticut.

Chu’s customers are blaming him for the investment losses they suffered when he allegedly overconcentrated their accounts in risky oil and gas investments that were unsuitable for them.

Widow Blames David Lerner Associates, Broker Gary Isler For Retirement Losses

Published on: October 7, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Retiree Alleges Overconcentration in Spirit of America Energy Fund

David Lerner Associates and its registered representative, Gary Walter Isler, are once again the subject of a Financial Industry Regulatory Authority (FINRA) arbitration claim. The claimant, an elderly widow, is accusing them of causing her to suffer significant retirement losses by unsuitably overconcentrating her portfolio in the Spirit of America Energy Fund.

This is not the first customer dispute naming Isler, who has been a David Lerner Associates stockbroker for almost 30 years.

Investors Seek $455K In Damages Involving National Asset Management Adviser Willard Pugh

Published on: September 29, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Boca Raton Stockbroker Recently Named in Two FINRA Arbitration Complaints

Willard Louis Pugh, a National Asset Management financial advisor in Florida, is currently under scrutiny in the wake of customer allegations alleging unsuitable investment recommendations. Pugh, who has been in the securities industry for 32 years, is also a National Securities Corporation broker. He was recently named in two customer disputes filed in Financial Industry Regulatory Authority (FINRA) arbitration.

The first investor claim, brought in June, seeks $300K in damages. William Pugh’s BrokerCheck record doesn’t specify what type of investment is involved. The second customer case, filed in July, names the United Development Funding V real estate investment trust (UDF V REIT). The claimant is seeking $155K.

Investors of Preferred Stocks Suffer Losses As Market Undergoes Nearly 5% Drop

Published on: May 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Unsuitability & Overconcentration May Lead to Unnecessary Investor Losses in Preferred Stocks

If you are an investor in preferred stocks or preferred stock funds, you may have suffered losses as the preferred-stock market had dropped almost 5% since its mid-Feb peak.

These stocks do carry some risk with them and they are not suitable for every investor. If you are wondering whether your investments were inappropriately recommended to you or your broker overconcentrated your portfolio with too many of them, contact our investor attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.