San Francisco, CA (PRWEB) May 19, 2011
The Law Offices of Jeffrey Feldman currently represents a claimant in a FINRA Arbitration Claim against broker Michael Dewayne Carter, Western International Securities, and Wells Fargo Advisors, LLC. According to allegations in the FINRA Arbitration Claim, the broker used the claimant’s investment money for his own purposes. More information about The Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.
Mr. Carter, while working as a broker at Wells Fargo Advisors, LLC, solicited the Claimant to make a $65,000 investment in a technology company in June of 2009, according to allegations in the FINRA Arbitration claim (FINRA No. 11-01677). By January of 2010, according to the FINRA Arbitration claim, Mr. Carter informed the Claimant that the money had been lost, never disclosing what he had actually done with the funds. As alleged in the FINRA Arbitration claim, the Claimant was recently contacted by an attorney at the United States Commodities Futures Trading Commission (“CFTC”), who indicated that Mr. Carter may have been soliciting investments from elderly individuals, and then using the money for his own benefit in a risky futures trading scheme, possibly through an offshore account. The Claimant now believes that instead of the money going into a technology company, the money was used by Carter for his own commodities trading transactions, as set forth in the FINRA Arbitration claim.
By October of 2009, Carter had changed jobs, taking a position with Western International Securities, and the Claimant, having no idea that anything was amiss in her investment accounts at that time, followed Carter to the new brokerage according to the FINRA statement of claim. After Claimant’s accounts were transferred to Western International Securities, Carter began selling off the Claimant’s suitable and relatively conservative securities without authorization from the Claimant, and replacing them with much riskier investments such as leveraged ETFs, as alleged in the FINRA Arbitration Claim. According to Mr. Feldman, “Based on the activity in the Claimant’s accounts and the significant commissions paid to Carter, it does not appear that Carter was properly supervised.” Find out more about The Law Offices Of Jeffrey Feldman at http://www.jeffreyfeldman.com.
Adding to the Claimant’s losses, when the Claimant contacted Carter to withdraw funds for a down payment on a house, he needlessly liquidated the bulk of Claimant’s IRA account instead of taking the funds from the Claimant’s non-qualified account, according to the FINRA statement of claim. As set forth in the FINRA Arbitration claim, this triggered a significant tax penalty on the IRA distribution, caused taxes on the Claimant’s Social Security, and increased the Claimant’s Medicare premium.