Broker Blames Tsunami for Stock Losses - Claim Alleges
FT. LAUDERDALE, Fla., March 12, 2013 /PRNewswire/ -- A Florida couple whose savings were intended to buy a home, and their son whose investment account came from "a lifetime of saving birthday and holiday gifts," have filed claim against New Jersey based brokerage firm Buckman, Buckman & Reid, after it's broker blamed the Tsunami for their stock investment losses.
The claim filed with the Financial Industry Regulatory Authority (FINRA) by the law firm of Securities Fraud Attorney Mark A. Tepper, alleges that Buckman, Buckman & Reid failed to supervise it's broker's activities in Claimants' accounts.
"Respondent's supervisory procedures were either defective or were not properly implemented and/or enforced," the claim alleges.
Noting that the IRS had filed a tax lien against the broker in 2009, the claim contends that after being "retired" from November 2004 through March 2010, the broker returned to work in the securities industry, this time for Buckman, Buckman & Reid, "under financial pressure which warranted heightened supervision."
"Respondent ignored the red flags rather than act decisively to detect and prevent improper activity," the claim contends.
Listing the "red flags," the claim alleges were "indications of wrongdoing," the claim contends that Respondent was recklessly speculating in low-priced stocks which far exceeded the risks suitable for the investment objective and risk tolerance marked on the new account forms; individual accounts were over-concentrated in three high risk securities; Respondent over concentrated one IRA in one high risk, low priced stock; a pattern of in and out trading in one IRA and in their son's account which was "turned over three times in less than 30 days"; and Respondent's recommendations resulted in immediate losses in Claimants' accounts.
About Mark A. Tepper, P.A. (www.MarkTepper.com)
Stock Broker Fraud Attorney Mark A. Tepper has earned the reputation of "Investor Advocate" while practicing law for over 35 years representing individual investors. He is a former Chief Trial Counsel at the New York Attorney General's Bureau of Investor Protection and Securities. FINRA arbitrators have upheld claims filed by Mr. Tepper against a number of large financial services companies. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory.
SOURCE Mark A. Tepper, P.A.