Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Keith Dagostino (Dagostino), previously associated with Ef Hutton LLC, has at least 15 disclosable events. These events include 15 customer complaints, alleging that Dagostino recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint on January 14, 2025.
Time frame: Unspecified. Claimant alleges unsuitable investments, breach of contract, and breach of fiduciary duty.
FINRA BrokerCheck shows a pending customer complaint on August 27, 2024.
Client alleges representative made unsuitable investment recommendations.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,000,000.00 on August 22, 2024.
Time frame: Unspecified. The Claimants allege unsuitable investment strategy, and breach of fiduciary duty.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $589,000.00 on August 19, 2024.
Time frame: Unspecified. The Claimants allege unsuitable investment strategy, and breach of fiduciary duty.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,000,000.00 on August 08, 2024.
Claimant seeks return of funds for IPO transaction that never took place.
FINRA BrokerCheck shows a settled customer complaint on July 15, 2024.
Claimants allege unsuitable investment strategy.
FINRA BrokerCheck shows a settled customer complaint on May 07, 2024.
Client alleges representative made unsuitable recommendations and account mismanagement.
FINRA BrokerCheck shows a settled customer complaint on May 02, 2024.
Client alleges representative made unsuitable recommendations and account mismanagement.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on April 05, 2024.
Time frame: Unspecified. Claimants allege unsuitability, breach of fiduciary duty, negligence, breach of contract and excessive trading.
FINRA BrokerCheck shows a settled customer complaint on January 26, 2024.
Time frame: unspecified. Claimants allege unsuitability, breach of fiduciary duty and fraud.
FINRA BrokerCheck shows a settled customer complaint on November 03, 2023.
Time frame: February 2018 – present. Client alleges poor performance.
FINRA BrokerCheck shows a settled customer complaint on August 15, 2023.
Claimants allege unsuitable investments.
FINRA BrokerCheck shows a settled customer complaint on August 07, 2023.
Time frame: 2017 – present. Claimant alleges unsuitable investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $300,000.00 on June 06, 2023.
Time frame: July 2021 – May 2023. Claimant alleges unsuitable investment recommendations.
FINRA BrokerCheck shows a settled customer complaint on May 02, 2023.
Time frame: 2021 – Present. Claimant alleges unsuitable investments.
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. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. 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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Dagostino has been in the securities industry for more than 27 years. Dagostino has been registered as a Broker with Ef Hutton LLC since 2023.
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.
