If any investor observes activity by their brokerage firm that appears voluminous or excessive, he or she should seek experienced or professional review, Zamansky believes.
New York, New York (PRWEB) March 30, 2013
Zamansky & Associates LLC has filed a FINRA arbitration on behalf of a 63 year-old former customer of Davis & O’Bannon Inc., an investment firm located in Williamsville, NY. The case is FINRA No. 13-00322.
The Statement of Claim alleges that Davis & O’Bannon Inc. had discretionary authority over the customer’s account engaged in unsuitable, high risk trading. The trading was also alleged to be excessive in scope and volume, and involved speculative, concentrated short stock positions. The trading was also alleged to have used excessive margin levels, near maximum permitted levels under applicable law and rules, which violated the customer’s risk tolerance and investment objectives. As a result, the Statement of Claim alleges that the customer suffered a loss of $500,000.
FINRA arbitration attorney Jacob Zamansky believes that “trading levels which exceed certain annualized turnover ratios recognized by the S.E.C. is, on its face, excessive.” “Large concentrated short positions in securities are also unsuitable and inappropriate for investors who have moderate or conservative objectives or risk tolerance,” Zamansky says. If any investor observes activity by their brokerage firm that appears voluminous or excessive, he or she should seek experienced or professional review, Zamansky believes. In today’s stock markets, financial advisors are under enormous pressure to generate production and sometimes will do so by whatever means necessary, Zamansky states.
What Investors Can Do
If you would like to have your brokerage accounts reviewed or discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414