Securities Lawyers Blog
The investment attorneys at Gana Weinstein LLP have been investigating previously registered broker Thomas Logue (Logue). According to BrokerCheck Records, Logue has been subject to 5 customer complaints concerning misrepresentation and unsuitable investment recommendations, two of which are still pending. In addition, Logue has been subject to a financial regulation.
In February 2018, a customer alleged that Logue misrepresented the material facts about an investment and that this investment recommendation was unsuitable. The customer has requested $188,025.76 in damages. This dispute is currently still pending.
In December 2017, a customer alleged Logue made unsuitable transactions and is requesting them to be rescinded. The customer has requested $127,520.30 in damages. This dispute is currently still pending.
In September 2017, a customer alleged that Logue misrepresented the investments and that the investments were unsuitable to the customer. The dispute settled at $23,500.
Brokers are mandated to advise suitable investments for the customer by following certain criteria. First, there must be reasonable basis for the investment recommendation based off the broker’s research and due diligence into the investment’s properties such as benefits, risks, tax consequences, and other relevant factors. The broker must also match the investment appropriately to the customer’s specific investment needs and objectives including the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
A misrepresentation occurs when a broker omits or misrepresents information about the security that is material to an investor. As a result of the misleading information provided, the investor is then influenced to purchase, sell, or hold a security. Under the Securities Exchange Act of 1934 a misrepresentation or omission of a fact is material if a reasonable investor might have considered the fact important in the making of the investment decision. In addition, the Financial Industry Regulatory Authority (FINRA) Rule 2020 similarly prohibits members from effecting any transaction by means of any manipulative, deceptive, or fraudulent device.
The number of complaints and regulatory actions on Logue’s record are unusual compared to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. However, studies have found that in certain parts of California, New York or Florida, the rates of disclosure go up to as high as 18%. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters.
Logue entered the securities industry in 1990 and was most recently registered with American Independent Securities Group, LLC from July 2014 to June 2017. From November 2011 to August 2014, Logue was registered with Investors Capital Corp. From April 2004 to December 2011, Logue was registered with First Midwest Securities, Inc. From January 2002 to April 2004, Logue was registered with Dreher & Associates, Inc.
Gana Weinstein LLP’s investment fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of unsuitability and misrepresentation. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.