- July 31, 2023
- E1 Asset Management
Shaun Grimaldi (CRD#: 4529021) is a registered Broker at E1 Asset Management, Inc., in Jersey City, NJ.
He entered the securities industry in 2002 and previously worked for PHD Capital.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2023, a customer dispute was filed against Shaun Grimaldi. The allegation states, “The beneficiary who inherited the account after the original account owner passed away is claiming there was mismanagement of the deceased funds. Allegations are as per arbitration claim.” The customer dispute is pending.
In addition, Shaun Grimaldi has been the subject of four customer complaints, including one that remain pending, including the following:
- May 2023 — “Allegations per arbitration filing.” The customer dispute is pending, and damages of $4M are requested.
- April 2015 — “CUSTOMER ALLEGES MISREPRESENTATION AND UNSUITABLE INVESTMENT RECOMMENDATIONS FROM 2006 TO 2008.” The customer dispute was settled for $7,500.
- September 2014 — “CUSTOMER ALLEGES BREACH OF CONTRACT, UNSUITABILITY, MISREPRESENTATION, NEGLIGENCE, NEGLIGENT SUPERVISION AND FRAUD FROM THE TIME PERIOD OF JANUARY 2011 TO APRIL 2013.” The customer dispute was resolved with a settlement of $21,000.
- July 2011 — “CLIENT ALLEGES UNSUITABLE RECOMMENDATION. POSITION HELD FROM MAY 2007 THROUGH JANUARY 2008.” The customer dispute was closed with no action.
For a copy of Shaun Grimaldi’s FINRA BrokerCheck, click here.
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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 firstname.lastname@example.org.