Dimond Kaplan & Rothstein, P.A. is reviewing another potential FINRA arbitration claim against Los Angeles-based brokerage firm Wedbush Securities, Inc. to recover energy-sector investment losses for another elderly investor.
Broker Recommendations Resulted in Energy-Sector Investment Losses
DKR has represented multiple Wedbush customers over the years with complaints that Wedbush and its brokers engaged in misconduct that caused energy-sector investment losses. This latest potential case involves Webush’s recommendations that an elderly investor place approximately 75% of his entire account in a risky, energy-sector security.
We believe that the investment recommendation was unsuitable for the elderly man because it over-concentrated the investor’s money to significant risk of loss. This is especially problematic because the elderly investor had told Wedbush that he was willing to take only moderate risk with his money.
Securities regulators have been focusing on this type of financial elder abuse over the past several years.
The Wedbush Brokers Have Histories of Customer Complaints
The Wedbush brokers, William Mark Heiden and Ronald Hodge, are no strangers to customer complaints. At least eleven (11) other customers have accused Mr. Heiden of, among other things, financial elder abuse, unsuitable and unauthorized trading, fraudulent and deceptive activities, and falsifying documents. At least two of the other customer complaints involved Heiden’s recommendations of energy-sector investments. Other customers also have complained that Mr. Hodge mishandled their investments.
Claims involving Mr. Heiden have settled for nearly $2.5 million, with Mr. Heiden personally contributing more than $1 million. This is particularly telling because brokers rarely are required to personally contribute to such settlements. We believe this reflects the egregious nature of Mr. Heiden’s conduct. Several additional cases containing allegations of Mr. Heiden’s misconduct remain pending.
Wedbush was Required to Supervise the Brokers
Under California law and securities industry rules, Wedbush was obligated to supervise Mr. Heiden and Mr. Hodge. This included ensuring that the brokers recommended only suitable investments for customers. Wedbush appears to have failed to supervise the brokers properly, resulting in the alleged energy-sector investment losses.
Wedbush Has a Long History of Regulatory Troubles
The fact that Wedbush Securities allowing the over-concentrated energy securities sales should come as no surprise. Wedbush has been the subject of nearly 100 regulatory investigations, fines, and settlements involving, among other things, failure to supervise.
Have you Lost Money with Wedbush Securities?
If you lost money at Wedbush or had investment losses with Wedbush brokers William Mark Heiden or Ronald Hodge, contact a an investment fraud attorney as you may have a valid FINRA arbitration claim to recover your Wedbush Securities investment losses.