Written by The White Law Group• April 15, 2019• 7:37 pm• Blog, Current Investigations, Securities Fraud Articles

George Merhoff Losses, Cetera Advisors Investigation

George Merhoff Jr. & Cetera Investigation, Featured by Top Securities fraud Attorneys, The White Law Group

Concerned about George Merhoff Losses? Updated June 14, 2019

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Have you suffered losses investing with financial advisor George Merhoff, Jr. and Cetera Advisors? If so the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration Claim.

The White Law Group continues to investigate potential claims involving George Merhoff losses and the liability his employer, Cetera Advisors, may have for failing to properly supervise him. The firm has represented several investors in lawsuits against Cetera regarding its alleged failure to supervise Merhoff.

As we told you last May, Cetera Advisors was facing more than $5 million in damages after clients began filing arbitration claims in 2016 accusing advisor George Merhoff (Klamath Falls, Oregon) of over-concentrating their portfolios in energy stocks such as LINN Energy.

In August, according to Merhoff’s FINRA BrokerCheck Report, Oregon Department Consumer and Business Services, Division of Financial Regulation (DFR) sanctioned Merhoff and Cetera alleging violation of “unfair” conduct and failure to supervise. Cetera Advisors, LLC and Merhoff neither admitted nor denied the allegations.

According to FINRA, “DFR assessed a $70,000 civil penalty; $35,000 was collected near the time the Final Order became effective. The remainder will not be collected upon provided the voluntary heightened supervision is maintained. The Penalty was joint and several between Cetera Advisors LLC and George Merhoff.”

Update on April 15, 2019

According to his FINRA BrokerCheck report, Cetera Advisors discharged Merhoff on April 3, 2019 for “violating firms policies and procedures by making undisclosed payments to a customer of the firm.”

As of May 17, 2019 Merhoff has 25 customer complaints listed on his broker report, 5 are pending.

Update on on June 14, 2019 – Merhoff Barred Today

According to the Financial Industry Regulatory Authority (FINRA) on June 14, the regulator has reportedly barred Merhoff from associating with any FINRA member at any time.

On April 19, 2019, FINRA staff reportedly sent Merhoff a letter requesting documents and information, in connection with FINRA’s review of Merhoff’s issuance of consolidated account reports to customers and his making of undisclosed payments to customers. However, Merhoff allegedly did not provide the documents and information. Instead, Merhoff’s lawyer reportedly contacted FINRA staff and stated that Merhoff would not respond to the request. Consequently, he has been permanently barred from working in the securities industry.

Failure to Supervise

Brokers and financial advisors are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading, that violate securities laws and regulations. They have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you are concerned about George Merhoff losses, the attorneys of The White Law Group may be able to help you recover your losses. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.