Insight Securities Broker, Carlos Legacy, Has Four Pending Customer Complaints, Involving The Sale Of Worthless Securities
Carlos Legacy (CRD # 2148751) is a Financial Advisor at Insight Securities, Inc. in Highland Park, Illinois, where he also allegedly a control person of the company. Carlos Legacy has been in the securities industry since 1991 and previously worked at Investment Placement Group.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since 2018, Carlos Legacy has been the subject of four customer complaints, alleging impropriety in connection with securities that were sold, that turned out to be worthless after the issuer filed for bankruptcy. The complaints allege “Clients were managed by third party advisors. In March of 2018 LOAs were submitted to transfer assets to another bank. Client alleges that the transfer documents were fraudulent and that Insight Securities, Mr Legacy and Pershing LLC were negligent in missing the red flags of this transfer.” Carlos Legacy has denied the complaints and alleges that he and Insight Securities were not involved in the misconduct. The complaints allege total damages of more than $11.5 million.
A For a full copy of Carlos Legacy’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/2148751#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
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