- December 5, 2020
- Ausdal Financial Partners
Randy Birkinbine (CRD # 2008599) is a Financial Advisor at Ausdal Financial Partners, Inc. in North Oaks, MN. Randy Birkinbine has been in the securities industry since 1990 and previously worked at Workman Securities Corporation, Invest Financial Corporation, FSC Securities Corporation, and Lutheran Brotherhood Securities Corp.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Randy Birkinbine has been the subject of four (4) customer complaints, alleging sales practice misconduct:
• September 2020—”Client alleges unsuitable investments and concentration in illiquid investments.” Alleged damages are $109,000 and the matter remains pending.
• February 2018—”Client believes that recommended private placements in January 2012 and November 2013 were not fully explained. Further, that he is now unable to access his investments and has learned he will receive back less than he invested.” The claim was denied.
• November 2013—”CLIENT ALLEGES SHE WAS TO RECEIVE 7% ANNUM GUARANTEED APPRECIATION.” The matter settled for $25,847.54.
• July 2013—”CLIENTS PURCHASED SENIOR PREFERRED NOTES IN QUEST ENERGY MANAGEMENT THROUGH MR. BIRKINBINE. THE LOANS DEFAULTED, AS A RESULT OF BEING TAKEN INTO A RECEIVERSHIP. CLIENT ALLEGES THAT WORKMAN SECURITIES DID NOT PERFORM DUE DILIGENCE ON THE PRODUCT. THEY ALLEGE THAT THIS LACK OF DUE DILIGENCE IS THE REASON FOR THEIR LOSSES.” The matter settled for $35,000.
In addition to the above customer complaints, on May 14, 2017 Randy Birkinbine was discharged from Investment Financial Corporation following allegations that he was in ”VIOLATION OF FIRM POLICY IN REGARD TO MULTIPLE, INCOMPLETE NEW ACCOUNT OR TRANSACTION DOCUMENTS SIGNED BY CLIENTS.”
For a copy of Randy Birkinbine’s CRD, click here
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.