Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating customer complaints and a FINRA enforcement action with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael Hebner (Hebner). According to BrokerCheck records, Hebner has been subject to five customer complaints and one employment termination for cause. The customer complaints against Hebner allege a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.
Hebner was terminated in January 2015 by Wunderlich Securities, Inc. on allegations that Hebner failed to follow firm procedures regarding the approval and retention of correspondence. The most recent claim was filed in January 2017 alleging Hebner made unsuitable recommendations from 2010 until 2014. The customer claims that the activity caused $429,000 in damages. The claim is currently pending.
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.