- June 7, 2022
- Ameriprise Financial Services
Arthur Grossbard (CRD#: 1020971) is a dually registered Broker and Investment Advisor at Ameriprise Financial Services, LLC in West Orange, NJ.
He entered the securities industry in 1982 and previously worked for Royal Alliance Associates, Inc.; New Century Financial Group, LLC; Financial Network Investment Corporation; and Pennsylvania Securities Company.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2021, a customer dispute was filed against Arthur Grossbard. The allegation states, “Claimants allege that the Financial professional recommended an investment that was unsuitable.” The customer dispute is pending. Damages of $250,000 are sought.
In addition, Arthur Grossbard has been the subject of one additional customer complaints and two regulatory disclosures from the 1980s, including the following:
- April 2020 — “It is alleged that two $50,000 private placement investments (in the same fund but involving each individual claimant—claimants were sisters) were inappropriately recommended to the claimants.” The customer dispute was settled for $65,000.
- August 1987 — The National Association of Securities Dealers censured Arthur Grossbard with a fine of $5,000.
- November 1986 — “VIOLATIONS AGAINST THE COMPANY, PENNSYLVANIA SECURITIES COMPANY AND THREE SALESPERSONS, ARTHUR S. GROSSBARD, AND OTHERS, INCLUDE, “SWITCHING” OF LONG-HELD MUTUAL FUNDS, FAILURE TO MEET “FULL-DISCLOSURE AND “KNOW YOUR CLIENT” STANDARDS UNDER 9 V.S.A. SECTIONS 4221A(4) AND 4224.” The State of Vermont sanctioned Arthur Grossbard with disgorgement/restitution.
For a copy of Aruthur Grossbard’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
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 age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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.