• June 21, 2024
• Osaic Wealth

Louis Martin Wargo (CRD#:1416101) is a Registered Broker and Investment Advisor with Osaic Wealth, Inc., in Brecksville, OH.

Broker’s Background

He entered the securities industry in 1994 and previously worked with Merrill Lynch, Pierce, Fenner & Smith Incorporated; The Equitable Life Assurance Society of the United States; AXA Advisors LLC; and FSC Securities Corporation.

Current and Past Allegations of Conduct Leading to Investments Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2024, Louis Wargo became the subject of a customer dispute alleging, “unsuitable recommendation and sale of an alternative investment.” The damage amount requested is $137,000 and the customer dispute is still pending.

In addition, Louis Wargo has been the subject of five other customer disputes:

• November 2023— “The Claimant alleges that the financial professional sold him an alternative investment that was unsuitable.” The damage amount requested is $40,000 and the customer dispute is still pending.
• January 2021—“Claimants allege unsuitability of investment in alternative investments which caused financial harm. The allegations include negligence, gross negligence, over-concentration, breach of fiduciary duty, breach of contract and material misrepresentations and omissions.” The customer dispute settled for $19,000.
• September 2020—“CLAIMANT ALLEGES HIS ACCOUNT WAS OVER CONCENTRATED IN ALTERNATIVE INVESTMENTS.” The customer dispute settled for $45,000.
• July 2020—“Client alleges 2015 business development company purchase was unsuitable.” The damage amount requested was $22,000 and the customer dispute was denied.
• December 2004—“CLIENT ALLEDGED HE SHOULD NOT HAVE BEEN PUT INTO A VARIABLE ANNUITY WITH A 72+ DISTRIBUTION. HE FURTHER ALLEGED HE WAS NOT GIVEN COMPLETE INFORMATION TO MAKE DECISION.” The customer dispute was denied.

For a copy of Louis Wargo’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.