Financial Advisor, John Pronovost, Has Had Five Customer Complaints Filed Against Him In 2018 For Alleged Sales Practice Violations
The Wolper Law Firm is currently investigating claims against John Pronovost, a Financial Advisor at Cambridge Investment Research in Watertown, Connecticut. John Pronovost has been in the securities industry since the 1980s and previously worked at MML Investor Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in 2018, five customers have filed complaints against John Pronovost for alleged sales practice misconduct, including the following:
• October 2018—”Client alleges unauthorized sale of LJM funds was unsuitable, as well as non-disclosure of fees associated with the fund.” This matter remains pending.
• June 2018—”Clients allege the sale of LJM funds was unsuitable.” Alleged damages are $75,000 and the matter remains pending.
• May 2018—”Clients allege misrepresentation and suitability of mutual fund.” Alleged damages are $50,000 and the matter remains pending.
• April 2018—”Client alleges a mutual fund purchased in 2016 is unsuitable for his risk tolerance. Alleged activity occurred between January 2017 and February 2018.” Alleged damages are $150,000 and the matter remains pending.
A For a full copy of John Pronovost’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/1990612#disclosuresSection
The LJM Preservation and Growth Fund, which trades under the ticker symbols LJMIX, LJMAX and LJMCX, declined nearly 80% in February 2018. The prospectus for the LJM Preservation and Growth Fund provides that the investment objectives of the fund are to “seek capital appreciation and capital preservation with low correlation to the broader US equity market.” The LJM Preservation and Growth Fund allegedly utilizes a variety of investment techniques to achieve this objective.
According to Gretchen Rubb from Morningstar, “this fund should never have been marketed to fund shareholders as a took for capital preservation.” Contrary to how this fund was marketed and sold, it declined precipitously in February 2018, causing substantial losses for investors.
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.
If you or someone you know was a customer John Pronovost and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
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.
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