Articles Tagged with Unsuitable Investments

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from dealing with RBC brokers who have oversold energy stocks and other energy-related investments. Although these days energy stocks are among the worst investments to own – the pandemic and oil & gas glut have severely depressed demand — prior to this year brokers had been aggressively pitching petroleum-producing companies. Brokers who aggressively sold energy stocks knew how volatile the energy sector has become, yet filled investors’ portfolios with oil and gas issues. Thousands of investors have legitimate claims against their advisors for overselling unsuitable investments.

Companies that once were opening drilling operations at a breakneck pace are facing bankruptcy as the slump in the industry worsens. Investors who bought individual energy stocks, exchange-traded or mutual funds are feeling the pain.Most recently, investors filed claims against RBC brokers Joseph Ijong Chu and Christopher Lawrence Phillips, who worked at the firm’s Stamford, Connecticut, office. The brokers face investor claims of more than $2 million for reportedly selling “unsuitable investments in oil-producing and industrial metals & materials stocks leading to an over-concentration in those sectors.”

One claim against Chu alleges the broker sold $1.6 million in energy investments to a client between Sept. 18, 2018, through Jan. 20, 2020. The complaint states that the stocks not only declined in value, but were “outside their [customers’] investment objectives.” A separate, $500,000 claim against Chu, filed in July, 2020, alleged he “misrepresented the risk of allocation in energy and material sectors investments and over concentrated the Claimant’s accounts in highly volatile investments.”

Stoltmann Law Offices is investigating Andrew Scott Corbman, who recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). Corbman is accused of allegedly making unsuitable investment recommendations that were inconsistent with the customers’ investment objectives and risk tolerances and resulted in over-concentration of their liquid net worth in these investments from April 2009 through June 2009. Corbman also allegedly recommended to customers who were a married couple to purchase unsuitable highly risky leveraged, inverse Exchange-Traded Funds (Non-Traditional ETFs). And in March 2010, Crobman recommended to an elderly customer with a conservative risk tolerance to purchase an unsuitable and risky alternative mutual fund with no operational history. He also allegedly distributed a sales brochure for an alternative mutual fund to at least 10 of his customers that contained information that was misleading. These are all against securities rules and regulations.

A broker has a duty to recommend suitable investments for his clients, based on the client’s age, net worth and investment objective, among other factors. If he does not, his brokerage firm can be held liable for investment losses because it is responsible for supervising him. If you lost money with Andrew Scott Corbman, please call our securities law firm in Chicago to speak to an attorney about your losses. The call is free. We may be able to help you sue his firm, Newbridge Securities, in the Financial Industry Regulatory Authority (FINRA) arbitration forum.

According to Corbman’s online FINRA BrokerCheck report, he was registered with RAF Financial Corporation in Denver, Colorado from July 1994 until October 1997, A.G. Edwards & Sons in St. Louis, Missouri from October 1997 until May 2000, Morgan Stanley in Purchase, New York from May 2000 until December 2002, ING Financial Partners in Des Moines, Iowa from December 2002 until June 2004, ING Financial Partners in Ashburn, Virginia from July 2004 until March 2008, FSC Securities Corp in Ashburn from February 2008 until January 2011 and Kovack Securities in Lansdowne, Virginia from January 2011 until November 2015. He is currently registered with Newbridge Securities in Landsdowne and has been since November 2015. He has seven customer disputes against him, one of which is currently pending.

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