- September 20, 2023
- UBS Financial Services, Inc.
John Sommo (CRD#: 3141638) is a previously Registered Broker.
He entered the securities industry in 1998 and previously worked for Dean Witter Reynolds, Inc.; Prudential Securities Incorporated; Wells Fargo Advisors, LLC; and UBS Financial Services, 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 December 2021, FINRA barred John Sommo indefinitely. Allegations include, “ Respondent Sommo failed to respond to FINRA requests for information.” The regulator statement details, “Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated December 31, 2021 and January 24, 2022, respectively, on April 4, 2022, Sommo is barred from association with any FINRA member in all capacities. Sommo failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.”
In addition, John Sommo has been the subject of several customer disputes, which include the following:
- July 2022—“Time frame: September 2015 to September 2020 Allegations: Claimants’ counsel alleges unsuitability and overconcentration of certain investments, and that such investments resulted in principal losses. Claimants’ counsel further alleges misrepresentation and unauthorized trading with respect to the handling of Claimants’ investment accounts.” The dispute is still pending.
- September 2020—“Time Frame: December 2, 2015 to January 31, 2020 What were the allegations against the individual? The client alleges she was placed in unsuitable securities and was overconcentrated in the MLP energy sector. The alleged damages are estimated to be in excess of $5,000.00.” The dispute was settled for $30,000.
- September 2008—“CLIENT STATES HE WAS NOT INFORMED THAT HE COULD LOSE PRINCIPAL OR THAT HE WOULD HAVE PENALTIES FOR EARLY WITHDRAWALS PRIOR TO PURCHASING A VARIABLE ANNUITY. CLAIM AMOUNT BELIEVED TO EXCEED $5,000. (10/01/2007 – 09/15/2008).” The dispute was denied.
- April 2008— “HIS COMPLAINT AROSE OUT OF THE SALE OF AN ARS THAT WAS MADE PRIOR TO THE WIDESPREAD ILLIQUIDITY IN THE ARS MARKET THAT OCCURRED IN FEBRUARY 2008.” The dispute was settled for $25,000.
For a copy of John Sommo’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.
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