Center Street Securities: FINRA Claim Alleges Unsuitable Investments
The White Law Group announces the filing of a FINRA arbitration claim against Center Street Securities for investment losses involving high risk alternative investments.
The firm submitted a claim to FINRA Dispute Resolution on behalf of a Indiana resident alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges that Center Street Securities unsuitably invested its client in high-risk alternative investments including the following:
ICAP Equity Income Fund (ETF)
E2C ESA Bond 1, LLC
MCG Preferred Opportunity Fund, LLC
The claim seeks damages of $100,000.01 and $300,000.
Brokerage firms have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it to its clients. It must perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that Center Street Securities 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 advisor. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing a claim in court.
“Investors often 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.
For more information on the claim filed by The White Law Group, please contact the firm at 1-888-637-5510.
To learn more about the White Law Group and its representation of investors in FINRA arbitration claims, such as the one against Center Street Securities, please visit https://www.whitesecuritieslaw.com.Tags: Center Street Securities, FINRA claim Last modified: November 8, 2023