Client Alleged “Unsuitable, Unauthorized, and Excessive trading.”
According to an award posted last week, a Financial Industry Regulatory Authority panel ordered Stifel Nicolaus to pay $500,000 in compensatory damages to a client after she filed a complaint alleging “unsuitable, unauthorized, and excessive trading.”
The customer reportedly claimed that her advisor, John Raymond Lisowski, while employed by Stifel, purportedly mishandled her account by failing to recommend and implement a suitable investment strategy or appropriate asset allocation, including allegedly over-concentrating her account in General Electric, Range Resources and U.S. Steel Corporation securities.
The claim further alleged that Lisowski placed unauthorized option trades, engaged in excessive trading and invested her funds in unsuitable securities, including Barrick Gold, Cliff’s Natural Resources, General Cable Corporation, MannKind and ProShares UltraShort 20+ Year Treasure, reportedly causing her to incur substantial damages.
The FINRA panel reportedly ruled that Stifel and Lisowski, who were both named as respondents in the customer’s action, were “jointly and severally liable” in the case. In the statement of claim, the customer reportedly requested compensatory damages of at least $390,000 and treble damages of $1.17 million. The panel reportedly denied the request for punitive damages as well as attorneys’ fees.
According to FINRA BrokerCheck, Lisowski has been affiliated with Stifel Nicolaus in Pittsburgh, PA since 2007.
Recovery of Investment Losses
Brokerage firms are required to perform due diligence on any offering they recommend. They must ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.
If a firm fails to perform due diligence or makes an unsuitable recommendation, the broker-dealer can be held responsible for any losses in a FINRA Arbitration claim.
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 without filing such claims in court.
If you are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation to discuss your options, please call the offices of The White Law Group at 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.