Lawsuit Alleges Independent Financial Group made Unsuitable Investment Recommendations
The White Law Group is announcing that it has filed a FINRA Lawsuit against Independent Financial Group on behalf of a couple in Carlsbad, CA, requesting damages for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The Statement of Claim alleges that financial advisor William Aubrey Morrow unsuitably invested his clients in the following high risk alternative investments, among others:
Penneco Drilling Associates 2012-1
APX Energy Drilling Partners 2013-B LP
Catalyst Energy 2012-1 LP
Catalyst Energy 2013-1 LP.
RK Opportunity Fund III, LLC
RK Opportunity Fund II, LLC
The claim seeks damages between $100,000.00 and $500,000.00.
The Statement of Claim further alleges that Independent Financial Group failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors. 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.
According to the Financial Industry Regulatory Authority, William Aubrey Morrow has reportedly been the broker of record for at least twelve (12) customer disputes for similar allegations.
According to D. Daxton White, managing partner of The White Law Group, “It is unfortunate, but we believe that many more investors have suffered devastating losses due to the broker-dealer’s failure to supervise and don’t realize they have recovery options.”
“Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that the Independent Financial Group violated FINRA rules, it can be held responsible for any resulting losses in a FINRA arbitration claim.”
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.
The firm has handled more than 600 FINRA arbitration claims alleging claims for unsuitable investment recommendations, conversion, breach of fiduciary duty, selling away, fraud and other issues.