by Brian Mahany
Are you a customer of Wedbush Securities? Did you know that a Financial Industry Regulatory Authority (FINRA) arbitration panel found that Wedbush Securities called the company’s behavior a “morally reprehensible failure.” Although the dispute involved monies owed by the company to one of its traders, the criticism is quite harsh.
This case did not involve a dispute with a customer, however Wedbush is now stranger to those complaints either. According top public records, Wedbush has been found guilty of misconduct and ordered to reimburse customers many times. How many times? The BrokerCheck system has 138 pages of regulatory sanctions, complaints and arbitration awards. These figures do not include settlements made before arbitration or court action was filed.
With a history of unhappy stockbrokers and customers, customers should be a bit cautious. Some of the prior cases found that Wedbush failed to supervise its stockbrokers, engaged in “churning,” made unsuitable recommendations and beached fiduciary duties to clients. Serious stuff.
In fairness to the company, not every stockbroker has engaged in fraudulent conduct. The company employs hundreds of brokers and has dozens of offices.
Make sure you understand what investments are being recommended to you and insure that the stockbroker can fully explain the investment – derivatives and complex strategies are often beyond the understanding of many investors and brokers too.
While no broker can guarantee investment results, broker dealers must understand your risk tolerance, goals and financial situation before making any investment recommendations. They must also insure that any conflicts are disclosed and that the recommendation is suitable for you.
If you lost money with a stockbroker and think he or she failed to take one of these important steps, contact a securities fraud lawyer. Our team of investment fraud attorneys can help you anywhere in the U.S. We have arbitrated and tried to jury verdict stock and investment cases throughout the country.
Mahany & Ertl, LLC – America’s fraud lawyers. Milwaukee, Detroit, Portland & San Francisco