Securities Arbitration Lawyers BlogSilver Law Group Files Claim Against Portfolio Advisors Alliance Alleging Brokers Churned Account and Racked Up Over $500,000 in Commissions
Silver Law Group has filed a FINRA arbitration claim against Portfolio Advisors Alliance, LLC after its brokers excessively traded (churned) the Claimant’s account.
The securities arbitration claim alleges the Claimant met his initial Portfolio Advisors Alliance broker in 2013 at another brokerage firm: FINRA-barred firm John Thomas Financial. The Claimant initially opened his accounts with a modest sum of money and gave the broker a chance to make money for him as he promised. The broker proceeded to convince the Claimant to utilize margin in order to increase his profits, according to the FINRA arbitration claim, and deposit additional funds to satisfy margin calls.
Unfortunately for Claimant, the broker allegedly proceeded to churn the account, repeatedly buying and selling four (4) different stocks, including several high-risk and speculative pharmaceutical investments. When the broker resigned, another broker took over the accounts without the Claimant’s knowledge and proceeded with the same “investment strategy” of making unauthorized transactions and churning the account, according to the securities arbitration claim.