PHX Financial, Inc. Broker, Serge Parakhnevich (Serge Parker), Has Had Two Customer Complaint Disclosures Alleging Sales Practice Misconduct
Serge Parakhnevich aka Serge Parker (CRD # 5493064) is a Financial Advisor at PHX Financial, Inc in New York, NY. Serge Parakhnevich aka Serge Parker has been in the securities industry since 2008 and previously worked at Aegis Capital Corp, John Thomas Financial, Clark Dodge & Co., Inc., Alexander Capital, L.P., and Brookstone Securities, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on August 6, 2020, FINRA sanctioned Serge Parakhnevich aka Serge Parker, suspending him for 45 days and fining him $7,500. According to the FINRA Letter of Acceptance, Waiver and Consent, “Without admitting or denying the findings, Parakhnevich consented to the sanctions and to the entry of findings that he executed trades in a customer account without the customer’s prior written authorization or his member firm’s approval of the account as discretionary. The findings stated that the customer was generally aware of the fact that Parakhnevich was exercising discretion in his account. In addition, Parakhnevich completed and submitted firm compliance questionnaires wherein he falsely answered questions related to whether he handled customer accounts on a discretionary basis.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019062329901%20Serge%20Parakhnevich%20CRD%205493064%20AWC%20va.pdf
In addition, Serge Parakhnevich aka Serge Parker has been the subject of two (2) customer complaints, alleging sales practice misconduct:
• April 2020—”UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” Alleged damages are $249,281.00 and the matter remains pending.
• August 2015—”Client alledges unauthorized trading, excessive trading and churning for the time period of 10/14/2013 through 04/10/2014.” Alleged damages are $100,000 and the matter remains pending.
For a copy of Serge Parakhnevich’s CRD, click https://brokercheck.finra.org/individual/summary/5493064#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 firstname.lastname@example.org.
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