Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Garrett Moretz (Moretz), currently associated with Lifemark Securities Corp., has at least 3 disclosable events. These events include 3 customer complaints, alleging that Moretz recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $105,000.00 on October 03, 2024.
Allegations pertain to an investment in an alternative product intended to be a small component of a larger diversified portfolio. Investment was purchased in 01/2018. Unfortunately, the company that sold the investment has since filed Chapter 11 bankruptcy. Allegations include failure to perform due diligence, material misrepresentation, negligence, and an unsuitable recommendation.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on April 29, 2024.
Allegations pertain to an investment in an alternative product, intended to be a small component of a larger diversified portfolio. Investments were purchased from 09/2017. Unfortunately, the company that issued the investment has since filed Chapter 11 bankruptcy. Additionally, client claims the representative failed to notify Claimant that an illiquid REIT he owned became public, causing losses when the price declined. As a result, allegations include breach of fiduciary duty, negligence, breach of contract, and misrepresentation. LifeMark believes these to be suitable and appropriate transactions given the information available at the time of the transaction, concerning the investment product as well as the client’s financials, risk tolerance and objectives as represented by the client.
FINRA BrokerCheck shows a settled customer complaint on October 11, 2023.
Allegations of an unsuitable investment in an alternative product, intended to be a small component of a larger diversified portfolio. Client purchased the alternative product in November of 2017. Unfortunately, the company that sold the investment has since filed Chapter 11 bankruptcy. Clients allege unsuitable investment recommendations based upon insufficient due diligence, breach of fiduciary duty, negligence, and material misrepresentation and omissions of material facts.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Moretz entered the securities industry in 2000. Moretz has been registered as a Broker with Lifemark Securities Corp. since 2017.
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.
