Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Richard Wesselt (Wesselt), previously associated with Fortune Financial Services, Inc., has at least 8 disclosable events. These events include 8 customer complaints, alleging that Wesselt 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 $10,000.00 on December 16, 2024.
Clients allege that Wesselt sold them unsuitable variable annuities and life insurance
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on July 10, 2024.
Claimant alleges that Wesselt recommended an unsuitable annuity and life insurance
FINRA BrokerCheck shows a pending customer complaint with a damage request of $3,750,000.00 on March 13, 2024.
Customers allege the representative made unsuitable recommendations and misrepresentations and/or omissions concerning annuities and insurance products. In addition, the customers claim the representative forged their signatures on disclosure or loan documents.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on December 29, 2023.
Claimants allege Mr. Wesselt made unsuitable investment recommendations related to variable annuities and life insurance.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on December 12, 2023.
Client alleges that Wesselt made unsuitable investments with variable annuities and life insurance. Wesselt also misrepresented the costs and fees associated with these products
FINRA BrokerCheck shows a settled customer complaint with a damage request of $45,000.00 on October 26, 2023.
Customers alleges sale of variable annuity and life insurance were unsuitable.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on October 23, 2023.
Customers alleges sale of variable annuity and life insurance were unsuitable.
FINRA BrokerCheck shows a settled customer complaint on August 03, 2023.
Customers allege unsuitable recommendations and overselling life insurance
Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. In addition, the SEC has promulgated ‘Regulation Best Interest (Reg BI)‘ which according to the SEC enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.
Brokers have an obligation to first obtain and evaluate sufficient information about a retail investor to form a reasonable basis to believe the account recommendations are in the retail investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. Every recommendation’s cost and investor details are always part of material information. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.
In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. Accordingly, a brokerage firm may not rely blindly upon the issuer for information concerning a company in lieu of conducting its own reasonable investigation.
Additional investor safeguards include broker disclosure requirements. Brokers are required by FINRA to reveal the events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on their public BrokerCheck reports. FINRA has recognized that recent studies indicate future regulatory and customer complaint issues can be predicted for brokers who have experienced them before. FINRA’s Office of the Chief Economist (OCE) published a study showing the predictability of disciplinary and disclosure events based on past similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.
Wesselt has been in the securities industry for more than 28 years. Wesselt has been registered as a Broker with Fortune Financial Services, Inc. since 2017.
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.
