Securities Lawyers Blog
According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Michael Lipscomb (Lipscomb) has been the subject of at least four customer complaints and two criminal matters over the course of his career. Customers have filed complaints against Lipscomb alleging securities law violations including that the broker made unsuitable investments, negligence, unauthorized trading, and excessive trading among other claims.
Lipscomb entered the securities industry in 1992. From March 2007 until August 2014, Lipscomb was associated with Wunderlich Securities, Inc. Lipscomb is currently registered with Ameriprise Financial Services, Inc. out of the firm’s Orlando, Florida office.
All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation 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.
The number of customer complaints against Lipscomb is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
Investors who have suffered investment losses due to broker misconduct may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors concerning securities violations. Our consultations are free of charge and the firm is only compensated if you recover.