Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with Rocky Mountain Financial LLC, FSC Securities Corporation and Barry George Hartman. Some of Hartman’s clients have alleged that he made unsuitable recommendations of high-risk securities, such as AIG stock, and committed sales practice violations regarding non-traded REITs, or Real Estate Investment Trusts.
According to stock fraud lawyers, some non-traded REITs may have carried a high commission, which in the past has motivated brokers to recommend the product to investors despite the investment’s unsuitability. The commission on a non-traded REIT is often as high as 15 percent. Many non-traded REITs carry a relatively high dividend or high interest, making them attractive to investors. However, non-traded REITs are inherently risky and illiquid, which causes them to be unsuitable for many investors.
Financial Industry Regulatory Authority rules have established that firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given his or her age, investment objectives and risk tolerance. Furthermore, securities fraud attorneys say brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer.
Hartman is an FSC Securities Corporation-registered representative, but does business under the company name of Rocky Mountain Financial. During his financial services career, he has reportedly been involved in multiple customer complaints and a regulatory investigation.
If you suffered significant losses as a result of doing business with a stockbroker or financial advisor and have reason to believe that the broker or advisor made unsuitable recommendations or improperly handled your account, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.