Ft. Lauderdale, Fl. March 24 – A Florida couple, as the beneficiaries of a Living Trust, has filed claim against brokerage firm Laidlaw & Company (UK) Ltd., for allegedly turning a rogue broker loose on the unsuspecting retirees.
The claim, filed with the Financial Industry Regulatory Authority (FINRA) by the law firm of Securities Fraud Attorney Mark A. Tepper, alleges that Laidlaw & Company failed to supervise its broker’s unsuitable activities in the Trust.
“Respondent recommended an unsuitable investment strategy that over-concentrated the Living Trust account in four speculative securities using margin – borrowed money – which dramatically increased the risk,” the claim contends.
According to the claim the costs to manage the couple’s Living Trust were too high for the account to be profitable. “During the period May 9, 2012 to December 31, 2012, the maintenance factor for the Living Trust was 20.1%. That means the account had to earn over 20% during the specified period just to break even and cover costs,” the claim alleges.
“No reasonable person would knowingly agree to an investment strategy that resulted in the customer sustaining unnecessary losses and high costs while it generated unnecessarily high commissions for the broker,” the claim argues.
The broker’s “speculative trading in the Living Trust was reckless and Respondent’s failure to supervise was grossly negligent,” the claim contends.
“The broker made repeated unsolicited telephone calls (“cold-calls”) trying to get Claimant to open an account. When Claimant did, the broker took advantage,” the claim alleges.
Laidlaw & Company maintains corporate headquarters in New York with locations in Ft. Lauderdale, San Francisco, Stamford, Melville, NY and London.
About Mark A. Tepper, P.A. (www.MarkTepper.com)
Stock Broker Fraud Attorney Mark A. Tepper has earned the reputation of “Investor Advocate” while practicing law for over 35 years representing individual investors. FINRA arbitrators have upheld claims filed by Mr. Tepper against a number of financial services companies, both large and small. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory. To discuss your legal rights with the law firm of Mark A. Tepper P.A., you can email askmark@marktepper.com or telephone the law firm at 954-961-0096.
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