June 4, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

George Merhoff – Cetera Advisors – Update on Investigation

George Merhoff

Concerned about your investments with George Merhoff  & Cetera Advisors?

Have you suffered losses investing with financial advisor George Merhoff, Jr. and Cetera Advisors? If so the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration Claim.

The White Law Group continues to investigate potential claims involving George Merhoff and the liability his employer, Cetera Advisors, may have for failing to properly supervise him.

As we told you last May, Cetera Advisors was facing more than $5 million in damages after clients began filing arbitration claims in 2016 accusing advisor George Merhoff (Klamath Falls, Oregon) of over-concentrating their portfolios in energy stocks such as LINN Energy.

In August, according to Merhoff’s FINRA BrokerCheck Report, Oregon Department Consumer and Business Services, Division of Financial Regulation (DFR) sanctioned Merhoff and Cetera alleging violation of “unfair” conduct and failure to supervise. Cetera Advisors, LLC and Merhoff neither admitted nor denied the allegations.

According to FINRA, “DFR assessed a $70,000 civil penalty; $35,000 was collected near the time the Final Order became effective. The remainder will not be collected upon provided the voluntary heightened supervision is maintained. The Penalty was joint and several between Cetera Advisors LLC and George Merhoff.”

Merhoff currently has 18 customer complaints listed on his broker report.

Failure to Supervise

Brokers and financial advisors are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading, that violate securities laws and regulations. They have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.

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.

If you suffered losses investing with George Merhoff and Cetera Advisors, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 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, visit www.WhiteSecurtiesLaw.com.