Former Registered Aegis Capital Corp. Broker, Robert Buffington, Has Had Four Customer Complaint Disclosures Since February 2018
Robert Buffington (CRD # 5220332) was a Financial Advisor at Aegis Capital Corp. in New York, NY. Robert Buffington was in the securities industry from May 2007 to October 2019 and previously worked at Gunnallen Financial, INC, Maxim Group LLC, and Bear, Stearns & Co. Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), between February 2018 to March 2020, Robert Buffington was the subject of four (4) customer complaints, alleging sales practice misconduct. The allegations include the following:
• March 2020—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” Alleged damages are $642,224.00 and the matter remains pending.
• January 2020—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, CHURNING, COMMON LAW FRAUD, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT.” The matter remains pending.
• January 2020—”TIME FRAME: NOVEMBER 2018- PRESENT. CLAIMANT ALLEGES UNSUITABLITY, COMMON LAW FRAUD, CHURNING, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” The matter remains pending.
• February 2018—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNAUTHORIZED TRADING AND UNSUITABLE INVESTMENT RECOMMENDATIONS.” The matter was settled for $136,982.43.
For a copy of Robert Buffington’s CRD, click https://brokercheck.finra.org/individual/summary/5220332#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.
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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 email@example.com.