- July 29, 2020
- Ameritas Investment Corp
Gary Barth (CRD # 2466996) is a Financial Advisor at Ameritas Investment Company, LLC in Kearney, NE. Gary Barth has been in the securities industry since 1994.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Gary Barth has been the subject of four (4) customer complaints, alleging sales practice misconduct:
• December 2019—”FINRA ARBITRATION 19-03530 IN WHICH CLAIMANTS ALLEGE MISREPRESENTATION IN THE SALE OF REITS.” Alleged damages are $600,000 and the matter remains pending.
• February 2009—”CUSTOMER ALLEGES THET RR PLACED TRADES IN THEIR ACCOUNT WITHOUT THEIR AUTHORIZATION.”
• October 2007—”COMPLAINANT ALLEGES THAT SALES REPRESENTATIVE MISLED HIM REGARDING THE ACTUAL PREMIUMS NECESSARY TO SUSTAIN HIS LIFE INSURANCE POLICY.”
• June 2003—”CLIENT ALLEGES THAT REP FAILED TO DISCLOSE SEVERAL PERTINENT PROVISIONS OF THE VARIABLE POLICY.”
For a copy of Gary Barth’s CRD, click https://brokercheck.finra.org/individual/summary/2466996#disclosuresSection
Gary Barth’s most recent costumer complaint disclosure alleges misrepresentation in the sale of Non-Traded REITS. Non-Traded REITs do not trade a public securities exchange. For this reason, Non-Traded REITs can be illiquid, meaning investors may be unable to sell their investments on demand. Typically, the commissions generated on non-traded REITs are higher than industry norm and may be subject to extreme volatility due to associated risk factors. Non-Traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments. The commissions for Non-traded REITs average between 4.5%-7.5%.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.