- April 28, 2019
- CUSO Financial Services
Eric Shanks is a former Financial Advisor at CUSO Financal Services in Richardson, Texas. Eric Shanks entered the securities industry in 1996 and previously worked for Washington Mutual Financial Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2014, Eric Shanks was “discharged” by CUSO Financial Services for failing to “disclose surrender of a fixed annuity to fund a variable annuity purchase.” Since that time, Eric Shanks has been the subject of four customer complaints, alleging sales practices violations. Among the complaints include:
- February 2019—”Arbitration filed which alleges representative solicited client to purchase unapproved investments away from the firm through a third party. Allegations include breach of fiduciary duty and failure to supervise. Representative was discharged by the Firm on 4/28/2014 for unrelated reasons.” The alleged damages are $688,000 and the matter remains pending.
- March 2018—”Client alleges representative, and/or another representative, Conrad Bautista, sold unapproved investments to client away from firm beginning in 2012 and through 2014. Representative was discharged by firm on 4/28/2014 for unrelated reasons.” The matter was settled for $67,250.
- September 2016—” Client alleges that her variable annuity contract was not structured correctly at the time of purchase through a former representative in March 2007. *UPDATE TO REFLECT SETTLEMENT WITH CLIENT COMPLETED ON 6/2/2017. AS AN ACCOMMODATION DUE TO A POTENTIAL MISUNDERSTANDING, CFS AGREED TO COMPENSATE CLIENT AND RESTORE CONTRACT AND BENEFIT VALUES OF CLIENT’S VA WITH COMPENSATION FOR LOSS OF PRINCIPAL IN THE AMOUNT OF $15,029.46, AS WELL AS ADDITIONAL INTEREST COMPENSATION IN THE AMOUNT OF $8,808.50 AND REIMBURSEMENT OF EARLY SURRENDER CHARGES INCURRED BY CLIENT IN THE AMOUNT OF $894.01 FOR A TOTAL SETTLEMENT AMOUNT OF $24,731.97.” The matter was settled for $24,731.
Prior to Eric Shanks’ termination, he was the subject of four additional customer complaints between 1999 and 2011.
For a copy of Eric Shanks’ CRD, click https://brokercheck.finra.org/individual/summary/2724083#disclosuresSection
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.
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