Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating Peachcap Securities, Inc. (Peachcap Securities) broker Aaron Brodt (Brodt). According to BrokerCheck Records kept by The Financial Industry Regulatory Authority (FINRA), Brodt has been subject to four customer complaints alleging breach of fiduciary duty and unsuitable investment recommendations. One of these disputes is currently still pending. In addition, Brodt has also been subject to one financial action.
Most recently, in May 2017, a customer alleges that from 2014 to 2015, Brodt breached his fiduciary duty and was grossly negligent in his recommendation of 4 investments that he placed the customer in.
In April 2016, a customer alleged that from May 2015 to October 2015, Brodt recommended unsuitable investments to the customer. The case was settled at $116,667.
In April 2016, a customer alleged that in May 2015, Brodt provided unsuitable investment recommendations. The dispute was settled at $58,333.
All advisers are obligated to make suitable investment recommendations for their clients by following certain criteria. For an investment recommendation to be suitable, the broker must have first have a reasonable basis for recommending the security/product based off the broker’s research of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs. Investment objectives and needs include the clients net worth, life savings, age, investor experience, and any other information provided by the client.
Brodt’s record shows an unusual amount of complaints in comparison to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. However, studies have found that in certain parts of California, New York or Florida, the rates of disclosure go up to as high as 18%. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters.
Brodt has been in the securities industry since 2008 and has been registered with Peachcap Securities since July 2016. From February 2012 to May 2016, Brodt was registered with Accelerated Capital Group. From May 2008 to February 2012, Brodt was registered with Meridian United Capital, LLC.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of security fraud and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover.