The firm announces the filing of a FINRA arbitration and its continuing investigation of the sales practices of Karl Romero (Nasdaq:LPLA) for his management of client accounts and the overconcentration of energy and/or real estate related stocks including:
- Gastar Exploration
- Arbor Realty
- Resource Capital Corp.
We are currently investigating whether all material risks of the recommended investments were disclosed to clients as well as whether Karl Romero implemented an appropriate risk management strategy.
“Karl Romero has been the subject of at least 12 customer complaints during his employment in the securities industry. His employer, LPL, knew or should have known that based on his prior complaints, Mr. Romero posed a risk to LPL customers,” said Ryan Bakhtiari.
The securities law firm represents retail and institutional investors around the world in securities arbitration and litigation matters. Attorneys for the firm have appeared before the Financial Industry Regulatory Authority (FINRA) and in numerous state and federal courts to resolve financial disputes between customers, banks, brokerage firms and other financial institutions.
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.