- May 24, 2022
- Arkadios Capital
Joseph P. Young (CRD: 4068656) is a previously registered Broker and previously registered Investment Advisor.
He entered the securities industry in 1999 and previously worked for Arkadios Capital; Triad Advisors, Inc.; LPL Financial Corporation; Wachovia Securities Financial Network, LLC; Morgan Keegan & Co., Inc.; and Tejas Securities Group, 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 2022, a customer dispute was filed against Joseph P. Young. The allegation states, “Claimant alleges negligence, over-concentration, and unsuitable recommendations with regard to alternative investments.” The customer dispute is pending. Damages of $1M are requested.
In addition, Joseph P. Young has been the subject of two customer complaints, including the following:
- November 2011 — “ALLEGED THAT INVESTMENT WAS UNSUITABLE DUE TO LIQUIDITY CONCERNS.” The customer dispute was settled.
- September 2007 — “CUSTOMER ALLEGES UNSUITABLE EQUITY INVESTMENTS IN AN ADVISORY ACCOUNT MANAGED BY A THIRD-PARTY MONEY MANAGER AND THAT COSTS ASSOCIATED WITH THE INVESTMENT WERE NOT FULLY DISCLOSED. CUSTOMER ALSO ALLEGES UNSUITABLE REIT INVESTMENTS.” The customer dispute was denied.
For a copy of Joseph P. Young’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Alternative investments are not regulated by the U.S. Securities and Exchange Commission (SEC), and are often subject to fraud and other schemes. Examples include commodities, hedge funds, real estate, derivatives contracts, private equity, managed futures, and venture capital. They are not typically regulated by the SEC, nor are they usually liquid or easy to value, which makes them risky investments. In addition, alternative investments are often open only to accredited investors with an income of $200,000 or more or a net worth in excess of $1M; they also require high up-front minimums. When these opportunities are opened to non-accredited investors, it may be because of unsuitability, fraud, selling away or misrepresentation, and the investor may incur 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.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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.