• August 8, 2023
• Vanderbilt Securities LLC

Jeffrey Gitterman (CRD#: 1910332) is a registered broker at Vanderbilt Securities, LLC, as well as a registered investment advisor at Gitterman Wealth Management, LLC, in Edison, NJ.

Broker’s Background

Jeffrey Gitterman entered the securities industry in 1990 and previously worked for Triad Advisors Inc.; ING Financial Advisers, LLC; Aetna Financial Services, Inc.; AXA Advisors, LLC; and The Equitable Life Assurance Society of the United States.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, a customer dispute was filed against Jeffrey Gitterman. The Claimants allege, “the FP (financial professional) sold an investment product that was unsuitable”. The claim is pending, but the damage amount requested is $200,000.

In addition, Jeffrey Gitterman has been the subject of seven other customer complaints that have been settled, including the following:

• December 2021–“Claimants allege the financial professional and the respondent firms failed to conduct adequate due diligence with regard to certain alternative investments, and that the recommendations of the investments were not in keeping with the customer’s needs and objectives.” The customer dispute was settled for $39,362.88.
• December 2021–“Financial Professional Recommended Investments that were unsuitable.” The customer dispute was settled for $85,825.53.
• October 2021–“Claimants seek recovery for an allegedly unsuitable investment strategy beginning on or about September 2013 until February 2019. All claims were denied. The customer dispute was settled for $25,000.
• August 2021– “Claimants allege that the representative recommended an investment that was unsuitable.” The customer dispute was settled for $40,000.
• June 2021– “Claimant alleges that the recommendation of an investment in 2014 was not in keeping with the client’s objectives, and that the review of the product and disclosures to the client were not adequate.” The customer dispute was settled for $30,000.
• February 2020—“Claimant seeks recovery for an allegedly unsuitable investment strategy beginning on or about 2014.” The customer dispute was settled for $300,000.
• October 2019— “Respondents allege negligent and unsuitable investment recommendation.” The dispute was settled for $55,000.

For a copy of Jeffrey Gitterman’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 mwolper@wolperlawfirm.com.