Clients of 3 Rockwell Global Capital Financial Advisors Seek Damages for Churning, Unsuitable Recommendations

by InvestorLawyers on March 25, 2014

in Arbitration,FINRA,Securities Fraud,Suitability,Unauthorized Trading

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with Douglas Guarino, Lawrence Lee or Robert E. Lee and Rockwell Global Capital. The investigations are regarding fraud, unsuitable recommendations and churning that the three men allegedly conducted while registered with Rockwell Global Capital as financial advisors.

Clients of 3 Rockwell Global Capital Financial Advisors Seek Damages for Churning, Unsuitable Recommendations

According to stock fraud lawyers, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Churning, on the other hand, is a form of broker misconduct in which the broker performs excessive trading to generate personal profit.

In addition, a firm has an obligation to properly supervise brokers and financial advisors while they are registered with the firm. If it fails in this duty, securities fraud attorneys say it may be held liable for customer losses. One Statement of Claim has already been filed with the Financial Industry Regulatory Authority against the firm, alleging that Douglas Guarino, Lawrence Lee and Robert E. Lee had churned a client’s account. The claim is seeking damages for excessive trading, churning, fraud and unsuitable recommendations.

Reportedly, FINRA recently barred Robert E. Lee from the securities industry for “providing inaccurate written information to a customer regarding the customer’s account and investments” and was discharged from a different employer after allegations regarding customer account handling. He has at least five judgments or liens, two internal reviews and seven customer complaints. Douglas Guarino has had ten disclosed complaints from customers.

If you have done business with Douglas Guarino, Lawrence Lee or Robert E. Lee and you believe you received unsuitable recommendations or that your account was churned, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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