Securities Lawyers Blog
According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Francine Frechter (Frechter) has been the subject of two customer complaints and one employment separation. The customer complaints against Frechter allege a number of securities law violations including that the broker made unsuitable investments, misrepresentations, and failure to follow instructions among other claims.
Frechter entered the securities industry in 1984. Since 2000 Frechter was associated with Citigroup Global Markers Inc. From June 2009, until January 2014, Frechter was a registered representative with Wells Fargo Advisors, LLC. In December 2013, Frechter was discharged from Wells Fargo concerning allegations that Frechter recommended a lending product to three clients that was contrary to the firm’s policies. Currently, Frechter is associated with Stifel, Nicolaus & Company, Incorporated.
Advisers have an obligation to deal fairly with investors and that obligation includes 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 costs, 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 complaints and regulatory actions against Frechter is relatively large by industry standards. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must disclose different types of events, not necessarily all of which are customer complaints. These disclosures can include IRS tax liens, judgments, and even criminal matters.
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 where their broker has acted inappropriately. Our consultations are free of charge and the firm is only compensated if you recover.