The Law Firm of David Chase, headed by stock broker fraud lawyer David Chase, is reviewing a customer’s allegation made against Boston, MA-based Janney Montgomery broker Richard A. Baum concerning the recommendation of an unsuitable, overconcentration of energy securities. Filed in August of 2017, the customer complaint asserts that the improper overconcentration took place over a time period spanning from 2006 – 2014.
Baum has been employed by Janney Montgomery Scott at its Boston, MA office since 2014. Previously, he was employed by Oppenheimer & Co. from 2005-2014.
Stock brokers legally must recommend only suitable investments to their customers. This requires that the financial advisor investigate the investment’s attributes, including its benefits, risks, tax consequences and other relevant factors, to form a reasonable basis for the recommendation. Moreover, the stock broker must then match the recommended security with the customer’s specific profile, which includes her investment objectives, risk tolerance, age, income needs and other relevant factors.
Overconcentration is a form of unsuitability and is a serious forms of stock broker misconduct. Overconcentration is essentially where a stock broker recommends too much of one particular security, sector or industry, thereby magnifying the risk of loss in the event that security, sector or industry falls in value. Overconcentration denies the customer the benefits of a diversified, asset-allocated portfolio. A stock broker’s employing firm is responsible for supervising its registered representatives to detect and prevent overconcentration.
Customer who seek to recover their investment losses due to stock broker fraud or negligence must utilize the FINRA arbitration process. The Law Firm of David Chase works on a contingency fee basis, meaning you pay it nothing unless it recovers money for you.
If you invested with Richard Baum and Janney Montgomery Scott and have lost money doing so, you may be able to recover some or all of your losses. David Chase, an SEC attorney, is experienced in recovering investor losses due to stock broker misconduct and mismanagement through FINRA arbitration.
Securities lawyer David Chase represents investors nationwide in cases to recover their hard-earned money lost due to stock broker misconduct. If you have any questions about your ability to recover your investment losses, please contact David Chase, a stock broker fraud lawyer, for a free consultation at firstname.lastname@example.org or toll-free at (800) 760-0912.