On September 22, 2020, an arbitration panel for the Financial Industry Regulatory Authority (“FINRA”) made findings against Jason K. Williams (CRD#: 4676003) and entered an award against him exceeding $45,000.
The award followed a customer’s complaint of unsuitable investments and negligent account management, violations of the Indiana Securities Act, breach of contract, breach of fiduciary duty, violations of the FINRA Conduct Rules and NYSE Rules, respondeat superior, and negligence and negligent supervision.
Specifically, the customer’s complaint alleged that Williams, in contravention of the customer’s investment objective, risk tolerance, time horizon, overall age and retirement status, made numerous inappropriate investments, traded in and out of several stocks after short periods of time and over-concentrated the customer in several stocks, some of which Williams held himself and blogged about in comments he made on an internet discussion board.
Investor portfolios should never be over-concentrated in one particular business or market sector. Investing in a broad range of businesses, through a variety of investment types – such as stocks, bonds, and Treasury bills, and in different industries helps to reduce investor risk and increase the return on their investments.
The arbitration panel found Williams liable for $45,000 in compensatory damages, $500 in costs, and $23,000 in attorney’s fees.
According to BrokerCheck, Williams has worked for seven firms over his career:
- Thurston Springer Financial (CRD#: 8478) of Indianapolis, Indiana
- Wells Fargo Advisors, LLC (CRD#: 19616) of Indianapolis, Indiana
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691) of Greenville, South Carolina
- Hatteras Capital (CRD#: 143365) of Raleigh, North Carolina
- Rafferty Capital Markets, LLC (CRD#: 23682) of Boston, Massachusetts
- John Hancock Funds, LLC (CRD# 28262) of Boston, Massachusetts
- UBS Financial Services Inc. (CRD#: 8174) of Weehawken, New Jersey
The Frankowski Firm holds accountable brokers, supervisors, and firms that fail to heed their clients’ needs and goals by failing to diversify their portfolio. At a minimum, stockbrokers and investment firms should recommend well diversified portfolios to their client and inform the investor of the full range of investment options that are appropriate for the client’s needs.
Call The Frankowski Firm today at 888-741-7503 for a review of your portfolio. Your broker may be liable for over-concentrating your investments. You can also complete our contact form to make an appointment.