Utah Investor Alleges High Risk Products were Unsuitable
According to the Financial Industry Regulatory Authority (FINRA), a FINRA arbitration panel awarded $404,482 to a client of Aegis Investment Advisors and former broker Brandon C. Stimpson. The investor alleged the high risk products Stimpson recommended were not suitable for him.
The investor, Mark Watson, alleged that Allegis and Stimpson put him in unsuitable investments, violated fiduciary duty and engaged in unauthorized trading related to index put options tied to the Russell 2000 Index.
According to the complaint, Watson requested that Stimpson help him invest his life savings and requested that Stimpson invest no more than 25% of his portfolio in the index options, but Stimpson allegedly far exceeded that level.
The FINRA panel awarded Mr. Watson $270,452 in compensatory damages, $53,730 in interest, $20,000 in expert witness costs, $60,000 in attorneys’ fees and $300 in filing fees.
According to his FINRA BrokerCheck report, Stimpson was registered with Allegis in North Logan, UT from May 2014 until he was discharged in December for allegedly failing to follow the firm’s policies and code of ethics.
Stimpson has eight customer disputes listed on his broker report over a period of 16 years in the securities industry. He is not currently registered as a broker.
Failure to Supervise
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
Are you concerned about investments you made with Brandon Stimpson? If so, the attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.