Jeffrey Fladell Reportedly Suspended for Allegations of Unsuitable Recommendations involving 100 year old Customer
According to the Financial Industry Regulatory Authority (FINRA) on March 25, 2021, the regulator has reportedly suspended financial advisor Jeffrey Fladell (CRD #209278) from the securities industry after allegations that he made unsuitable recommendations to a 100 year old customer. In addition to the three month suspension, Fladell was reportedly fined $5,000, according to FINRA.
From February 2014 through August 2015, Fladell purportedly made unsuitable recommendations to “a senior over 100 years old,” which resulted in her extreme overconcentration in high-yield municipal bonds, according to a Letter of Acceptance Waiver and Consent.
FINRA says the customer in question, a retired senior over 100 years old, was allegedly the trustee for two conservative trust accounts at RBC. One trust account was purportedly for herself and the other was for the benefit of her sister-in-law, who also was a senior, according to the letter. Both accounts reportedly had the most conservative investment objective with a low risk tolerance. Beginning in 2014, despite the volatility of the municipal bond market at the time, Fladell purportedly repeatedly recommended that his customer invest in high-yield municipal bonds, a recommendation that was allegedly contrary to the investment profile of the trust accounts. By June 2015, 86 percent of his customer’s holdings and 100 percent of the customer’s sister-in-law’s holdings were allegedly invested in risky high-yield municipal bonds.
Fladell’s FINRA broker report indicates he was registered with RBC Capital Markets in Florham Park, NJ from 2009 until December 2017. He reportedly has 11 customer complaints filed against him during his career in the securities industry. Allegations include misrepresentation, “unsuitable investments in Puerto Rico bonds,” and overconcentration, among others.
For FINRA’s full findings, see FINRA case NO. 2017054432701.
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The White Law Group is investigating potential securities fraud claims involving Jeffrey Fladell and the liability his former employers may have for failure to properly supervise him.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as making unsuitable investments recommendations 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 suffered losses investing with Jeffrey Fladell and RBC Capital Markets, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
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.
Tags: broker investigation, FINRA, Jeffrey Fladell Last modified: July 13, 2023