- March 3, 2020
- Joseph Stone Capital
- Maxim Group
Travis Lippmann (CRD # 5908823) is a Financial Advisor at Joseph Stone Capital in New York, NY. Travis Lippmann has been in the securities industry since since 2011 and previously worked at Newbridge Securities and Maxim Group.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Travis Lippmann has three customer complaint disclosures reflected on his CRD, including two pending complaints, alleging sales practice misconduct. Among the customer complaints reflected on Travis Lippmann’s CRD include the following:
• January 2020—”CLAIMANT ALLEGES BREACH OF FIDUCIARY DUTY, UNSUITABLE INVESTMENTS, MISPREPRESENTATION AND NEGLIGENCE.” The alleged damages are $450,000 and the matter remains pending.
• August 2019—”THE CLAIMANT’S COUNSEL ALLEDGES THE FOLLOWING ACTIONS: UNSUITABLE RECOMMENDATIONS IN VIOLATION OF FINRA RULE 2111; CITING REASONABLE BASIS SUITABILITY, CUSTOMER SPECIFIC SUITABILITY, AND OVER CONCENTRATION. MATERIAL MISREPRESENTATIONS AND OMISSIONS IN VIOLATION OF TEXAS SECURITIES LAW AND FINRA RULE 2020. VIOLATION OF FINRA RULE 2210. MATERIAL MISREPRESENTATIONS AND NEGLIGENCE IN VIOLATION OF FINRA RULE 2010. RESPONDENT IS LIABLE UNDER RESPONDEAT SUPERIOR. FAILURE TO SUPERVISE IN VIOLATION OF FINRA RULE 3010..” The alleged damages are $200,000 and the matter remains pending.
• May 2017—”MISREPRESENTATIONS, SUITABILITY, FAILURE TO FOLLOW. AUGUST 2014 THROUGH JULY 2015.” The firm denied the complaint.
For a copy of Travis Lippmann’s CRD, click https://brokercheck.finra.org/individual/summary/5908823#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
Failure by a financial advisor to adhere to these requirements is evidence of negligence or, worse, investment fraud. If you as the investor can establish, at a minimum, negligent misconduct, you may be entitled to recovery your investment losses.
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 firstname.lastname@example.org.