Securities Arbitration Lawyers BlogMark F. Augusta, Hilltop Securities
Mark F. Augusta
CRD# 1333913
Silver Law Group is investigating potential customer complaints against Del Mar, California-based Hilltop Securities Inc. broker Mark F Augusta after a former client was issued a large monetary award settlement.
According to FINRA’s BrokerCheck report on Augusta, a client was awarded over 1.7 million in relation to a complaint that alleged unsuitable recommendations, breach of fiduciary duty, constructive fraud and unjust enrichment among other allegations.
The complaint stemmed from Augusta’s time at his previous firm, Wedbush Securities Inc. When issuing the award, the arbitration panel found that Augusta and his firm had engaged in highly improper conduct, committed elder abuse and permitted unauthorized trading in the client’s account.
Augusta was employed by Wedbush Securities from 2011-2015 based out of its Solana Beach, California office. Previously he was employed by Stone & Youngberg LLC of San Diego from 2006 to 2011.
When a customer opens an account with a broker and brokerage firm, the customer can choose if he or she wants to give the broker permission to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market. Often, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.
Unauthorized trading is when a broker facilitates 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, cold-calling, and unsuitability.
Unauthorized trading and outside business activity are serious forms of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. Failure to supervise is a claim made against a brokerage firm in these situations.
Among other basic tenets, brokers are required to recommend suitable investments to their customers. This requires that the broker: Investigates and conducts 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 appropriately matches the investment with the customer’s specific investment needs and objectives, such as the customer’s retirement status, long or short-term 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 unauthorized trading or unsuitable recommendations. The Silver Law Group works on a contingency fee basis, meaning you pay us nothing unless we recover money for you.
If you invested with Mark F. Augusta and Wedbush Securities Inc and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.