Ft. Lauderdale, Fl. Dec 13, 2016 – Linn Energy (LINQ), described as “a high risk, highly leveraged oil and gas limited liability company” is at the center of a claim filed with FINRA against Raymond James (NYSE: RTF) on behalf of an army veteran on disability.
In the claim, filed with the Financial Industry Regulatory Authority (FINRA), Attorney Mark Tepper, the former Chief Trial Counsel at the New York Attorney General’s Bureau of Investor Protection and Securities, alleges that the broker “increased the losses by using leverage, turning [the veteran’s] medium risk income Account into a financial nightmare.”
A Raymond James broker, “kept pushing Linn as the right alternative to a CD,” and put the veteran’s bank CD into a heavily margined, high risk account, over concentrated in Linn Energy (LINEQ), which the claim contends, “filed for federal bankruptcy protection on May 11, 2016.”
The claim alleges that even after Linn had fallen to under $3 per unit, the broker recommended [the veteran] should cost average by buying more before the price went back up.
The claim seeks recovery of losses amounting to more than 80 percent of the principal in the veteran’s account with Raymond James.
“Respondent also breached its duty to supervise its broker’s activities in [the veteran’s] Account by failing to detect and prevent the unsuitable recommendations, despite indications of wrongdoing (“red flags”). Respondent’s supervisory procedures were either defective or were not properly implemented and/or enforced,” the claim alleges.
For a free case evaluation from the Mark A. Tepper law firm, email attorney Mark Tepper at askmark@marktepper.com or telephone 954-961-0096.
About Mark A. Tepper, P.A. (www.MarkTepper.com)
Attorney Mark A. Tepper is the former Chief Trial Counsel at the New York Attorney General’s Bureau of Investor Protection and Securities. He has earned the reputation of “Investor Advocate” while practicing law for over 35 years representing individual investors. FINRA arbitrators have upheld stockbroker fraud claims filed by Mr. Tepper against many brokerage firms. A member of the Florida, New York and California Bars, Mr. Tepper is peer-reviewed for 16 consecutive years, AV PREEMINENT® for ethical standards and legal ability, the highest rating of lawyers in the Martindale-Hubbell Law Directory.
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