- July 14, 2020
- Alternative Investments
Robert Giannchiglia (CRD # 2117250) is a Financial Advisor at USA Financial Securities Corporation in Worcester, MA. Robert Giannchiglia has been in the securities industry since 1991 and previously worked at Investors Capital Advisory and Eastern Point Advisors INC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since September 20003, Robert Giannchiglia has been the subject of six (6) customer complaints, alleging sales practice misconduct:
• November 2019—”FINRA arbitration 19-03388 in which the claimants allege misrepresentation in the sale of private placement.” Alleged damages are $200,000 and the matter remains pending.
• March 2017—”BETWEEN 12/14/2009 AND 12/31/2016, CLAIMANT IS ALLEGING NEGLIGENCE, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, MISREPRESENTATION, UNSUITABLE TRADING AND FAILURE OF SUPERVISION.” The matter settled for $45,000.
• November 2014—”CLAIMANT ALLEGES UNSUITABLE INVESTMENTS, NEGLIGENT ACCOUNT MANAGEMENT, MISREPRESENTATION, BREACH OF CONTRACT, AND BREACH OF FIDUCIARY DUTY. JULY 2004 – DECEMBER 2007.” The matter settled for $14,995.
• November 2014—”CLAIMANT ALLEGES MISREPRESENTATION AND UNSUITABLE INVESTMENTS. 3/2005-4/2008.” The matter was denied.
• April 2013—”COMPLAINANT ALLEGES MISREPRESENTATION BY THE RR.” The matter was closed without action.
• August 2003—”CLIENT ALLEGING THAT HE WAS NOT TOLD HE WAS PURCHASING AN ANNUITY, AND THAT HE NEVER RECEIVED A CONTRACT OR A PROSPECTUS. CLIENT IS ALSO ALLEGING THAT THE REPRESENTATIVE HAD HIM SIGN BLANK FORMS.” The matter settled for $116,569.
For a copy of Robert Gianchiglia’s CRD, click https://brokercheck.finra.org/individual/summary/2117250#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, 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.