Did you lose money investing with Thomas Williams (CRD# 3176294)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Thomas Williams. If you suffered losses investing with Thomas Williams, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of September 16, 2020, Thomas Williams’s FINRA BrokerCheck Report contains the following:
1 Regulatory Event(s)
1 Criminal Disclosure(s)
UPDATE 9/16/2020: According to FINRA’s October 2019 Disciplinary Actions: “Thomas Raymond Williams Sr. (CRD #3176294, Cincinnati, Ohio) August 9, 2019 – An AWC was issued in which Williams was fined $10,000 and suspended from association with any FINRA member in all capacities for 10 business days. Without admitting or denying the findings, Williams consented to the sanctions and to the entry of findings that he omitted material information from an email communication to a customer regarding the status of funds held in escrow in connection with the customer’s investment in a private placement of notes for which Williams’ member firm had been the placement agent. The findings stated that Williams told the representative of the customer that the investment had been in a film production escrow account since the beginning of the investment because the film production company had not completed its financing or obtained the completion bond. Williams further stated that a tax credit lender was working with the film production company to obtain the funds from the escrow agent in order to pay the remaining principal of the notes as soon as possible. Though Williams had obtained information from a bank teller that the escrow account had been closed at the financial institution, he omitted that information from the email to the representative of the customer. Williams caused his email communication with the customer to be misleading by failing to disclose all of the information regarding the escrow. The suspension was in effect from September 17, 2019, through September 30, 2019. (FINRA Case #2016048071901)
Current and Previous Registrations
04/08/2011 – 06/22/2020 ROSS, SINCLAIRE & ASSOCIATES, LLC (CRD#:25440) CINCINNATI, OH
01/30/2003 – 12/01/2005 FIFTH THIRD SECURITIES, INC. (CRD#:628) CINCINNATI, OH
03/27/1999 – 02/16/2001 FIFTH THIRD SECURITIES, INC. (CRD#:628) CINCINNATI, OH
01/25/1999 – 03/27/1999 FIFTH THIRD SECURITIES, INC. (CRD#:3155) CINCINNATI, OH
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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