- December 11, 2021
- Aegis Capital Corp
Robert Buffington (CRD#: 5220332) is a previously registered Broker.
He entered the securities industry in 2007 and previously worked for Aegis Capital Corp.; Gunnallen Financial, Inc.; Maxim Group, LLC; and Bear, Stearns & Co., 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 March 2020, a customer dispute was filed against Robert Buffington, and damages of $642,224 were requested. The allegation states, “TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” The customer dispute is pending.
In addition, Robert Buffington has been the subject of three customer complaints, including the following:
- January 2020–“TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, CHURNING, COMMON LAW FRAUD, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT.” The customer dispute was settled for $335,000.
- January 2020–“TIME FRAME: NOVEMBER 2018- PRESENT. CLAIMANT ALLEGES UNSUITABLITY, COMMON LAW FRAUD, CHURNING, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” The customer dispute was settled for $315,000.
- February 2018–“TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNAUTHORIZED TRADING AND UNSUITABLE INVESTMENT RECOMMENDATIONS.” The customer dispute was settled for $136,982.43
For a copy of Robert Buffington’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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