The Law Firm of David Chase is investigating allegations involving Tampa, Florida-based Merrill Lynch (CRD#7691) broker Joel T Summerlin (CRD#2289767) with respect to possible excessive trading (churning) and unsuitable investment recommendations.
According to FINRA’s BrokerCheck report on Summerlin, a customer filed a complaint alleging he churned or excessively traded a customer account and rendered unsuitable investment advice from 2010 to 2017.
Merrill Lynch has employed Summerlin from December 1992 in Tampa.
Unauthorized trading takes place when a broker executes a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, selling away, cold-calling, and unsuitable investment recommendations.
Often, unauthorized trading occurs along with churning, which is characterized by a broker’s excessive trading in the account designed to generate commissions to enrich himself, with no benefit to the customer.
Unauthorized trading and churning are serious forms of broker misconduct. A broker’s employing firm is responsible for supervising the broker’s activities and may be held legally responsible for its failure to reasonably carry out this function. Failure to supervise is a claim that may be made against a securities brokerage firm in FINRA arbitration claim.
Among other basic tenets, brokers are required to recommend suitable investments to their customers. This requires that the broker: investigate and conduct due diligence into the investment’s attributes, including its benefits, risks, tax consequences, and other relevant factors to form a reasonable basis for the recommendation of the product, and to appropriately match the investment with the customer’s specific investment needs and investment objectives, such as the customer’s retirement status, risk tolerance, long or short-term investment goals, age, disability, income needs, or any other relevant factors.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to churning or unsuitable recommendations. 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 have invested with Joel T. Summerlin and Merrill Lynch and have lost money doing so, you may be able to recover some or all of your losses. David Chase is experienced in recovering investor losses due to broker fraud and brokerage firm misconduct through FINRA arbitration.
The Law Firm of David Chase fights for the rights of defrauded investors and investment fraud victims. If you have questions about your ability to recover your investment losses and legal rights, please contact David Chase for a free consultation at david@davidchaselaw.com or toll free at (800) 760-0912.
