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IN CONNECTION WITH AN INVESTMENT IN DEC. 2008, A RELATIVE OF THE CUSTOMER (BROTHER-IN-LAW), PURPORTEDLY ACTING ON BEHALF OF THE CUSTOMER, ALLEGED THAT UNSPECIFIED FEES WERE NOT DISCLOSED, THAT THE REPRESENTATIVE MISREPRESENTED HIS CREDENTIALS AND THAT INCORRECT TAX ADVICE WAS PROVIDED.
Broker Comment
THE REPRESENTATIVE DENIES THE ALLEGATIONS AND THE FIRM FOUND NO EVIDENCE TO SUBSTANTIATE THE ALLEGATIONS. THE COMPLAINT WAS WRITTEN AND SIGNED BY A RELATIVE OF THE CUSTOMER WHO APPARENTLY WANTED THE CUSTOMER TO DO BUSINESS WITH ANOTHER BROKER-DEALER. THE FIRM CONTACTED THE CUSTOMER BY MAIL AND TELEPHONE TO DISCUSS HER CONCERNS. THE CUSTOMER DID NOT RESPOND. AS A RESULT, THE FIRM CLOSED ITS REVIEW OF THE MATTER.
12/11/2008
Customer Dispute
Closed-No Action
Allegations
CLIENT ALLEGED HE WAS QUOTED A FIXED RETURN ON HIS VA INVESTMENT BY SOMEONE I SUPERVISED.
Damage Amount Requested
$75,000.00
Broker Comment
THE CLIENT DIED DURING THE COURSE OF THE INVESTIGATION. THE FIRM HAS ISSUED A DENIAL TO THE CLIENT REGARDING THE ALLEGATIONS, AS HE WAS GIVEN FULLY DISCLOSURE OF THE VARIABLE NATURE OF THE INVESTMENT AND HE SIGNED THE DISCLOSURE. THE DEATH BENEFIT OF THE CONTRACT HAS BEEN PAID TO THE CLIENT'S BENEFICIARY.
A brokerage firm, also called a broker-dealer, is in the business of buying and selling securities – stocks, bonds, mutual funds, and certain other investment products – on behalf of its customer (as broker), for its own bank (dealer), or both. Individuals who work for broker-dealers - the sales personnel are commonly referred to as brokers.
IA
Investment Adviser
An investment adviser is paid for providing advice about securities to clients. In addition, some investment advisers manage investment portfolios and offer financial planning services.
Disclosures
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.