Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Todd Lesk (Lesk), previously associated with Cambridge Investment Research, Inc., has at least 6 disclosable events. These events include 5 customer complaints, one regulatory event, alleging that Lesk 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 $500,000.00 on August 07, 2024.
Customer alleges representative made unsuitable recommendations during the period of March 2022 to December of 2023.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $800,000.00 on June 21, 2024.
Claimants allege that in July of 2022, representative induced Claimants to invest in products not approved by his firm.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on February 13, 2024.
Claimant alleges that during the time period January 2021 to September 2023, representative recommended an unsuitable life insurance policy and an unapproved investment product.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $47,516.93 on January 22, 2024.
Statement of Claim alleges RR used his position of trust to provide a false layer of legitimacy to structured settlement activities.
FINRA BrokerCheck shows a final customer complaint on October 06, 2023.
Without admitting or denying the findings, Lesk consented to the sanctions and to the entry of findings that he refused to provide information and documents and to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he recommended that his customer invest in a crypto asset offering away from Lesk’s member firm.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,180,000.00 on September 19, 2023.
Customers allege representative made unsuitable recommendations during the period of December 2021 to November 2022.
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. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended is in the retail 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.
Lesk has been in the securities industry for more than 25 years. Lesk has been registered as a Broker with Cambridge Investment Research, Inc. since 2022.
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.
