FINRA Awards $4 Million to Investors
According to The Financial Industry Regulatory Authority yesterday, FINRA arbitrators awarded more than $4 million to a group of investors for risky, unsuitable investments reportedly recommended by their broker, Anthony Diaz.
According to the decision on Jan. 19, the FINRA arbitrators awarded $4.3 million to 17 plaintiffs in their case against Anthony Diaz and the panel determined that he must pay $1.033 million in compensatory damages, $2.9 million in punitive damages and $413,266 in attorneys’ fees.
Diaz was accused of fraud and negligent misrepresentation among other causes of action. He allegedly invested the elderly clients’ life savings in high risk, illiquid private placement investments.
According to his BrokerCheck profile Diaz was barred from the industry in 2015, and he has 53 disclosures, including numerous customer complaints. He was most recently registered with IBN Financial Services in Scotrun, PA, but has been employed by 11 firms over the 14 years he worked as a broker, despite his lengthy disciplinary history.
Failure to Supervise
Brokers 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 Anthony Diaz, 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, 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 on The White Law Group, visit www.WhiteSecurtiesLaw.com.