Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating a customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Allegis Investment Services, LLC and its affiliated investment advisory firm Allegis Investment Advisors, LLC (Allegis) concerning unsuitable trading involving options. According to the brokercheck records of one of the firms representatives, Peter Klaass (Klaass), the firm has been subject to at least six complaints through this advisor since October 2015. Klaass lists his D/B/A as the Bowen Group.
The customer complaints against Klaass allege securities law violations that including unsuitable investments among other claims. The most recent claim was filed in June 2016 and alleges that in the role of supervisor, Klaass failed to meet the standard of care and in August 2015 client suffered a loss of $400,000. The claim is currently pending. In another arbitration filed in April 2016, the customer alleged that the Advisory firm recommended a trading strategy without regard to the client’s age, investment experience, and risk tolerance. The customer is seeking $660,300 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.