Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Shaun Hayes (Hayes), previously associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has at least 2 disclosable events. These events include one customer complaint, one regulatory, alleging that Hayes recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on November 12, 2024.
Between May 2020 through November 2022, Respondent used a trading strategy that included complex and risky products (the ‘Strategy’) for his clients, including leveraged and inverse ETFs and single stocks in the S&P 500, NASDAQ, Russell 2000, biotech, energy, micro-cap, and small-cap sectors. The products Respondent utilized to implement his Strategy hold high levels of risk, were volatile, and were intended for sophisticated investors who could understand the risks associated with the products and who were willing to accept that level of volatility. Respondent placed around 22 clients into the Strategy who had marked conservative or moderately conservative risk tolerances on their Suitability Information Form. For example, Client A lost just under half her account value, Client B lost approximately $40,000, and Clients C lost approximately 20% of their account value, all as a result of Respondent’s Strategy.
