According to FINRA, Andrew Corbman entered into a Letter of Acceptance, Waiver and Consent (AWC) to settle several allegations of industry rule violations for making allegedly unsuitable investment recommendations to clients.
According to the AWC, between April 2009 and March 2010, Corbman allegedly made recommendations to clients that were inconsistent with the client’s’ investment objectives -and risk tolerance which resulted in over-concentration of the client’s’ liquid net worth.
FINRA reported that Corbman purportedly recommended unsuitable highly risky leveraged inverse Exchange-Traded Funds (non-traditional ETFs) to a married couple with growth objectives and a moderate risk tolerance. Per Corban’s recommendations, the couple invested in two non-traditional ETFs and continued to invest in those products which grew from 11% to 64% of their liquid net worth.
In another case, FINRA alleged Corbman improperly recommend that an elderly widow purchase a risky alternative mutual fund with no operating history. The investment constituted 71% of the widow’s liquid net worth and was allegedly not appropriate for an investor, like her, that was seeking regular income.
FINRA further alleged that as a result these actions, Corbman violated NASD Conduct Rule 2310 and FINRA Rule 2010.
The AWC was signed by Van Patter on 01/13/2016. As part of the AWC, Corbman was suspended from association with any FINRA member for one month.
For the full FINRA allegations, see FINRA AWC No. 2010024620302.
According to Corbman’s FINRA BrokerCheck, he has been the subject of 8 customer complaints. It appears that many of the customer complaints involve similar allegations as those raised by FINRA in its AWC at which time he was affiliated with FSC Securities Corporation.
The White Law Group is investigating the liability that FSC Securities may have for failure to properly supervise Andrew Corbman. Brokerage firms are required to perform adequate due diligence on any investments they recommend and to ensure that all recommendations that are made are suitable in light of that client’s age, investment experience, net worth, investment objectives, and time horizon. If a firm permits unsuitable investments to be made, the firm can be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Andrew Corbman and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit http://www.whitesecuritieslaw.com.