The White Law Group Files a FINRA Claim against Somerset Securities Inc.
The White Law Group announces the filing of a FINRA arbitration claim against Somerset Securities Inc. for investment losses involving a high-risk private placement investment.
The firm submitted a claim to FINRA Dispute Resolution on behalf of an investor in California alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim alleges that Somerset Securities Inc. unsuitably invested its client in a high-risk private placement investment, iCap Equity, LLC. The claim seeks damages of $300,000 and 500,000.
Broker dealers have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it and must perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that Somerset Securities Inc. failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.
FINRA, the regulator who oversees brokers and brokerage firms, provides FINRA Dispute Resolution as an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
“Investors frequently suffer losses due to unsuitable investment recommendations by their brokers and don’t realize they have recovery options,” said D. Daxton White, managing partner of The White Law Group, a national securities fraud and FINRA arbitration firm.
Brokerage firms are required to supervise their representatives to make sure that they are following FINRA rules. If it can be determined that the financial advisor’s employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
