Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker James Pelletiere (Pelletiere), previously associated with Pruco Securities, Llc., has at least 4 disclosable events. These events include 3 customer complaints, one tax lien, alleging that Pelletiere 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 $5,001.00 on October 16, 2024.
The complainant alleges that his registered representative forged his signature on an insurance application on/or around September 04, 2019, and signed for new and additional policies, even though his current policies were still active.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $10,050.00 on April 11, 2024.
Customer alleges that the rep forced her to purchase a policy with a premium higher than she felt comfortable with and came to her place of work to give her cash to pay the first two months’ premium. He later advised her that she could reduce the monthly payment which caused the policy to go into default.
FINRA BrokerCheck shows a settled customer complaint on March 13, 2024.
The complainants allege that, beginning in or around 2017, the signatures on documents related to fixed annuity and life insurance policies were not genuine.
FINRA BrokerCheck shows a final customer complaint on October 04, 2023.
Without admitting or denying the findings, Pelletiere consented to the sanction and to the entry of finding that he refused to provide information and documents requested by FINRA in connection with its investigation into whether Pelletiere had, among other things, misused customer funds and accepted cash payments from a client.
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. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. 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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Pelletiere has been in the securities industry for more than 24 years. Pelletiere has been registered as a Broker with Pruco Securities, Llc. since 2019.
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.
