Two Pending Investment Arbitration Claims Allege “Unsuitable” Investment Recommendations
According to Ianace’s BrokerCheck Report, published by the Financial Industry Regulatory Authority (FINRA), two of Ianace’s customers recently initiated securities arbitrations—one against Wells Fargo and one against Merrill Lynch—relating to the alleged mishandling of their accounts:
- One customer alleges Ianace “made unsuitable recommendations and neglected to reduce the over-concentrated and over-leveraged nature of their accounts” resulting in alleged damages of $13,000,000.
- Another customer alleges “unsuitable investment recommendations and misrepresentations” resulting in requested damages of $18,000,000.
According to FINRA, the types of investments allegedly at issue include commodities. Regardless of the type of investment, FINRA Rules require brokers to have “a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable” based on a variety of factors, including the investor’s age, financial situation, investment objectives, risk tolerance etc. FINRA also requires brokers to “Know Your Customer” so that brokers learn and evaluate these factors before making investment recommendations.
FINRA Investigated Peter Ianace For Potential “Selling Away”
According to a Letter of Acceptance, Waiver and Consent filed by FINRA, FINRA initiated an investigation into Ianace’s “potential failure to disclose outside business activities to the Firm.” FINRA requested documents and information from Ianace in connection with its investigation. After Ianace ceased cooperation with FINRA, in violation of FINRA Rules, he was barred from the securities industry.
Selling Away May Be Grounds For Securities Arbitration Claim
Brokers typically offer a range of securities and investments to clients which are vetted and approved by their employing firm. These products have been thoroughly researched and given due diligence by the broker’s company, and are identified as suitable for clients.
When a broker offers a client something that wasn’t approved by the brokerage firm, he or she may be selling something that has not been through adequate vetting and due diligence. This increases the possibility of purchasing something with much higher risk, including loss of the entire investment. Selling unapproved investments is referred to in the industry as “selling away”.
FINRA Rule 3040 prohibits “selling away” unless the broker obtains specific permission by the firm to do so. Moreover, a brokerage firm may be liable to investors who suffer losses due to improper selling away.
Did You Invest With Peter Ianace?
If you experienced investment losses as a customer of Ianace at Merrill Lynch or Wells Fargo, you may have a claim in FINRA Arbitration to recover your losses.
Silver Law Group specializes in fighting for investors who lost money to brokers and financial advisors who took advantage of their positions as trusted financial professionals to defraud their clients of hard-earned savings. Silver Law Group operates on a contingency-fee basis, so the firm does not profit unless we recover funds for you. Contact Silver Law Group toll free at (800) 975-4345 or e-mail ssilver@silverlaw.com for a confidential consultation. Our attorneys represent investors nationwide in investment fraud disputes.