Investor lawyers currently are looking into allegations of misleading financial advice offered by Cynthia Couyoumjian and other First Allied Securities Inc. brokers selling private equities. Couyoumjian and her co-workers have been alleged in various instances to have not performed due diligence when recommending investments to clients.
A private equity includes any investment in a company or security that is not publicly traded. Like any investment, the purpose of private equity is to create new revenue for both the investor and for the recipient of the investment. Typically, the end goal for an investor in a private equity is to help the company expand or develop new product offerings. Before recommending anyone invest in a private equity, a licensed financial broker is required to completely and accurately explain to his or her client exactly what the investment entails, including any risks associated with the investment.
In one case, Couyoumjian referred clients to invest in a company called Advanced Equities, which she indicated as a “late stage equity,” meaning it was expected to hold an initial public offering (IPO) event within the next 36 months. Furthermore, Couyoumjian and others at First Allied Securities indicated that none of the prior investors had lost any money, inferring that there was very little risk in making this misrepresented investment.
This isn’t the first time that Couyoumjian has been in trouble for this sort of behavior. In 2006, she was found to have been placing misleading advertisements for seminars and was fined $20,000 and suspended for 31 days due to this behavior.
If you suffered significant losses as a result of doing business with Cynthia Couyoumjian or other First Allied Security brokers, or if you believe you received an unsuitable recommendation of private equities from another stockbroker or financial advisor, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a stockbroker arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966- 9598 or firstname.lastname@example.org for a no-cost, confidential consultation.