Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Travis Justin Lippman, formerly employed by Primary Capital, LLC and now with Spartan Capital Securities, has been subject to at least four customer complaints during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Lippman customer complaints allege that Lippman engaged in unsuitable investment practices.
In July 2021, a customer complained that Lippman violated the securities laws by alleging that Lippmann engaged in unsuitable trading. The claim alleges $853,231.33 in damages and is currently pending.
In January 2020, a customer complained that Lippman violated the securities laws by alleging that Lippman breached his fiduciary duty to his customer, recommended unsuitable investments, and engaged in misrepresentation and negligence. The claim settled in the amount of $90,000.
In August 2019, a customer complained that Lippman violated the securities laws by alleging that Lippman engaged in unsuitable trading. The claim alleged $200,000 in damages but was withdrawn.
In May 2017, a customer complained that Lippman violated the securities laws by alleging that Lippman engaged in unsuitable trading and is liable for misrepresentation. The claim alleged $34,000 in damages but was denied.
Brokers are required under the securities laws to treat their clients fairly. This obligation includes the duties to disclose material risks of the investments they recommend and to present products, particularly complex or confusing products, in a fair and balanced manner that allows the client to evaluate the recommendation. Another important obligation advisors have is to make only suitable recommendations for investments to the client. There are many investments that are not appropriate for the majority of investors or for certain investors given their risk tolerance, age, and other factors. Advisors should not present these investment options to clients. There are two screens that advisors must employ to determine whether an investment is suitable for a client. First, there must be a reasonable basis for the recommendation – meaning that the product has been investigated and due diligence conducted into the investment’s features, benefits, risks, and other relevant factors. The advisor must conclude that the investment is suitable for at least some investors and some securities may be suitable for no one. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
According to newsources, a study revealed that 7.3% of financial advisors had a customer complaint on their record when records from 2005 to 2015 were examined. Brokers must publicly disclose reportable events on their BrokerCheck reports that include customer complaints, IRS tax liens, judgments, investigations, terminations, and criminal cases. In addition, research has shown a disturbing pattern with troublesome brokers where brokers with high numbers of customer complaints are not kicked out of the industry but instead these brokers are sifted to lower quality brokerage firms with loose hiring practices and higher rates of customer complaints. These lower quality firms may average brokers with five times as many complaints as the industry average.
Lippmann entered the securities industry in 2011. From May 2011 through May 2021, Lippmann was registered with National Securities Corporation. From May 2012 through September 2013, Lippmann was registered with Global Arena Capital Corporation. From September 2013 through May 2014, Lippmann was registered with John Carris Investments LLC. From April 2014 through August 2014, Lippmann was registered with Coastal Equities, Inc. From July 2014 through September 2016, Lippmann was registered with Dawson James Securities, Inc. From September 2016 through April 2017, Lippmann was registered with Maxim Group LLC. From March 2017 through April 2019, Lippmann was registered with Newbridge Securities Corporation. Since April 2019, Lippmann has been registered with and employed by Joseph Stone Capital LLC out of the firm’s New York, New York office location. Additionally, Since September 2021, Lippmann has been registered with and employed by Primary Capital, LLC, out of the firm’s New York, New York office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.