Securities Lawyers Blog
Former stockbroker James Kirchner (Kirchner), former employed by brokerage firms David A. Noyes & Company (David Noyes), IFS Securities, and Cabot Lodge Securities LLC (Cabot Lodge) has been subject to at least seven customer complaints and one employment terminations for cause during the course of his career. According to a BrokerCheck report some of the customer complaints concern private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk products when they are not vetted appropriately by the firm selling them.
In March 2020 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related recommending alternative investments that were not suitable. The claim alleges $175,000 in damages and was settled for $90,000.
In January 2020 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related to recommending private placements during 2016 and 2017 that were not suitable. The claim alleged $300,000 in damages and was settled for $145,000.
In July 2019 a customer complained that Kirchner violated the securities laws by alleging that Kirchner engaged in sales practice violations related to recommending private placements during 2016 that was not suitable. The claim alleged $100,000 in damages and was settled for $50,000.
Private placement offerings are among the most speculative and costly investment products offered to retail investors. While the size of the private placement market is unknown, according to 2008 estimates, companies issued approximately $609 billion of securities through Regulation D offerings. Private placements allow many small companies to efficiently raise capital. However, regulators continue to find significant problems in the due diligence and sales efforts of some brokerage firms when selling private placements to investors. These problems include fraud, misrepresentations and omissions in sales materials and offering documents, conflicts of interest, and suitability abuses.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
Kirchner entered the securities industry in 1997. From September 2014 until December 2018 Kirchner was associated with David Noyes. From January 2019 until September 2019 Kirchner was a registered representative with IFS Securities. Finally, from September 2019 until March 2020 Kirchner was registered with Cabot Lodge out of the firm’s Chicago, Illionis office location.
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.