- September 11, 2020
- Cetera Advisors LLC
Richard Whitfield Brown (CRD # 1595628) is a Financial Advisor at Cetera Advisor Networks LLC in Fort Myers, FL. Richard Whitfield Brown has been in the securities industry since 1988 and previously worked at Summit Brokerage Services, Inc, McDonald Investments, Inc., and Raymond James & Associates, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Richard Whitfield Brown has been the subject of nine (9) customer complaints during his career, alleging sales practice misconduct:
• April 2019—”Claimants state that rep around 2010 sold client an annuity and REITS that were unsuitable.” The matter settled for $14,000.
• November 2017—”Unsuitable Investments.” The matter was closed without action.
• May 2017—”Unsuitable investments.” The matter settled for $9,500.
• March 2014—”BREACH OF FIDUCIARY DUTY, NEGLIGENCE, BREACH OF CONTRACT, FRAUD, MISREPRESENTATION.” The matter settled for $25,000.
• July 2013—”SUITABILITY”. The complaint was withdrawn.
• September 2009—”UNSUITABILITY – OVER CONCENTRATED.” The complaint was closed.
• February 2000—”CUSTOMERS ALLEGE UNSUITABLE INVESTMENTS.” The complaint was closed.
• July 1999—”CLAIMANT ALLEGES VIOLATION OF CHAPTER 517 FLORIDA STATUTES, NEGLIGENCE, COMMON LAW FRAUD. AN VIOLATION OF FEDERAL SECURITIES LAWS. CLAIMANT ALLEGES HER “GOOD QUALITY” INVESTMENTS WERE LIQUIDATED AND HER ACCOUNTS WERE TRADED ACTIVITY AND UNSUITABLY.” The matter settled for $32,500.
• February 1999—”VIOLATION OF CHAPTER 517, NEGLIGENCE, COMMON LAW FRAUD, RICO, AND VIOLATION OF FEDERAL SECURITIES LAWS. ALL CLAIMS RELEASED IN EXCHANGE FOR SETTLEMENT OF $100,000.00 N/A.” The matter settled for $100,000.
For a copy of Richard Whitfield Brown’s CRD, click here
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 firstname.lastname@example.org.