April 18, 2017 Comments (0) Current Investigations

FINRA Claim Filed Against Cetera Advisors, LLC over Investment Losses

George Merhoff
(Last Updated On: April 21, 2017)

The White Law Group announces the filing of a FINRA Arbitration claim against Cetera Advisors, LLC.

The White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim against Cetera Advisors, LLC involving high risk oil & gas investments.  This claim seeks to recover losses between $100,000 and $200,000.

The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of a California couple alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Cetera Advisors unsuitably invested the client in the following:

American Realty Capital IV
Amerigas Partners
Aperam
Arcelormittal
BP PLC
Chesapeake Energy
Chicago Bridge & Iron Co.
Enerplus Corp
Freeport-McMoran Inc.
Greenbrier Companies
Linn Energy
MainStreet Capital Holdings
OI SA
Pengrowth Energy
Powershares
Teekay Lng Partners
Total S.A.
Transocean
United States Natural Gas Fund ETF
Vale S.A.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that Cetera Advisors, LLC failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.

Additionally, it is alleged that George Merhoff was the financial advisor of record at the time of the investment recommendations. According to FINRA Broker Check, Merhoff has 10 (ten) customer complaints, including similar allegations of negligence, misrepresentation and unsuitable investments. According to FINRA Notice to Member 03-49, this puts George Merhoff in the worst 0.22% percent of all financial advisors in terms of the number of customer complaints lodged against him.

FINRA Dispute Resolution

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on the claim filed by The White Law Group, please contact the firm’s Chicago office at 888-637-5510.

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 White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.

Focus key word: George Merhoff