KlaymanToskes Files FINRA Arbitration Claim on Behalf of Retired M.D.
BEVERLY HILLS, CA, US, August 25, 2022 /EINPresswire.com/ — A retired physician who immigrated to the US as a teen, has filed a $1.4 million FINRA arbitration claim (Case No. 22-01786) against Antoine Souma, Galliott Capital Advisors, and Insigneo Securities LLC. This claim is the latest action against the once renown financial advisor, Souma. The claim alleges that Souma engaged in excessive trading or “churning”, margin abuse, an unauthorized trading strategy, as well as inflating the investor’s risk profile and failing to disclose the trades to the investor.
Unauthorized Trading Strategy Results in $1.4 Million Loss
The claim specifies that Souma engaged in an unauthorized strategy of misallocating the investor’s portfolio among longer duration bonds and bonds with lower credit quality. With this unauthorized change to longer duration bonds, Souma increased the risks to the investor to include interest rate and credit quality risks. This wrongful conduct was contrary to the investor’s directive and resulted in the account declining over $1.4 million.
Souma Uses Margin and Changes Investor Risk Strategy to Continue Ploy
Upon opening the account with Insigneo, Souma and Galliott improperly coded the investors account with an Investment Objective of “Growth” with a Risk Exposure of “High.” This allowed Souma to move the investor’s account from a conservative cash position into mostly long-term bonds. Additionally, Souma and Galliot got more aggressive with the strategy by employing a margin loan to purchase over $3 million in securities.
At Insigneo, Souma and Galliott “churned” the investor’s account by selling bonds that were recently purchased. After paying off the margin loan, Souma and Galliott thereafter lowered the Risk Tolerance for the investor’s account to “Moderate” and the Investment Objective was changed to “Income.” Through the churning of the bonds, Souma and Galliott generated excessive commissions and triggered unnecessary tax gains.
Souma’s 2-Month Suspension and Return to Churning
Interestingly, from September 2021 through December 2021, Souma and Galliott did not do any trading in the investors account. During this period, FINRA was investigating Souma for conduct while he was employed at JP Morgan. This investigation follows a $14,000,000 settlement paid to an investor by JP Morgan. As a result of this investigation, Souma agreed to a two-month suspension. During the suspension, another advisor was listed on the investor’s account. Under this advisor, no transactions were made. However, in February of 2022, when Souma returned as the Financial Consultant for the investor’s account, he immediately began purchasing bonds in the account.
Recover Your Investment Losses Today
Former and current customers of Antoine Souma who sustained damages and have experienced similar conduct are encouraged to contact Lawrence L. Klayman, Esq. at 1 (888) 997-9956.
About Us
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $245 million for investors in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence Klayman
KlaymanToskes, P.A.
+1 888-997-9956
lklayman@klaymantoskes.com