Securities Arbitration Lawyers BlogNew York-based LPL Financial Broker Thomas Borruso Under Investigation For Unsuitable Investment Recommendations
Thomas J Borruso
CRD#5475175
Silver Law Group is investigating former Melville, New York-based LPL Financial broker Thomas Borruso after a customer allegation of breach of unsuitable investment recommendations and over concentration was received by FINRA.
Our attorneys are licensed in NY and routinely represent investors in New York City and Long Island-based arbitration claims. Scott Silver is a SUNY Albany graduate and practiced for many years at 120 Wall St.
According to FINRA’s BrokerCheck report on Borruso, a complaint was filed in January of 2017 alleging Borruso provided unsuitable investment recommendations and over concentrated his customer’s equity position. The damages in this complaint are believed to be more than $5,000.
Later in 2017 Borruso was suspended by FINRA after he failed to respond to an official request for information.
Borruso was employed with LPL Financial since 2014 at their Melville, NY location.
Among other investment tenets, brokers are required to recommend suitable investments to their clients. 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. A broker may recommend a concentrated position in a security for multiple reasons. However, this a highly speculative and risky strategy which can result in large losses
The misrepresentation or omission of material facts concerning investment recommendations by a brokerage firm and its representatives may be a cause of action in a FINRA arbitration claim for damages. There are two types of misrepresentations and omissions; those that are fraudulent and those that are negligent.
Misrepresentations often occur during the offering process or prior to investing in a particular product. Misrepresentation can vary in appearance and, if made intentionally, are often times made in order to induce an unwitting investor to invest. An example of a misrepresentation can include promises of high dividends or that the company of the underlying investment will go public in a year.
If proven, an intentional misrepresentation can have serious consequences, as it is a violation of Rule 10b-5 of the Securities Exchange Act of 1934.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. 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 Thomas Borruso and LPL Financial 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.