- December 20, 2021
- Felti & Co.
Eric Overvig (CRD#: 1435223) is a dually registered Broker and Investment Advisor at Feltl & Company in Minnetonka, MN.
He entered the securities industry in 1985 and previously worked for The Oak Ridge Financial Services Group, Inc.; U.S. Bancorp Investments, Inc.; Associated Investment Services, Inc.; IFMG Securities, Inc.; TCF Investments, Inc.; Brokerbank Securities, Inc.; Protective Group Securities Corporation; Tuschner & Co., Inc.; Kennedy, Mathews, Landis, Healy & Pecora, Inc.; Mathews, Holmquist & Associates, Inc.; M.H. Novick & Co., Inc.; Van Clemens & Co., Inc.; and Waddell & Reed, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, a customer dispute was filed against Eric Overvig, and damages of $117,000 were requested. The FINRA sanction states, “Customers Allege that representative implemented unsuitable investment strategies and engaged in unauthorized trades.” The customer dispute is pending.
In addition, Eric Overvig has been the subject of one customer complaints, including the following:
- May 2019 – “Unauthorized trading, unsuitability and over-concentration during the period October 2018 to January 2019.” The customer dispute was settled for $7,500.
For a copy of Eric Overvig’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.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
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. 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.
FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.
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 email@example.com.