National investment loss lawyers KlaymanToskes is investigating David Elson Palmiter (CRD# 2746495) of Key Investment Services, and formerly registered with Citizens Securities, after the Cicero, NY-based broker/financial advisor received a recent customer complaint alleging $200,000 in damages.
The customers, who are elderly retirees, allege that Palmiter placed their investment funds in aggressive growth accounts without their knowledge and with no regard for the protection of their principal. The couple were long-time banking customers of Citizens Bank and allege that they were solicited by the bank to invest with Palmiter as their financial advisor.
The couple allegedly entrusted Palmiter with their assets because he was recommended by their bank and he assured them that he had developed investment programs to protect their savings. Palmiter allegedly submitted forms for investments in aggressive growth programs electronically. The couple’s accounts declined within a few months and they expressed their concerns about the protection of their funds with Palmiter.
Palmiter allegedly reassured the retirees that the investment would allow them to recover the losses they experienced, and would further provide positive returns. When the couple continued to face losses in their accounts, they had difficulties trying to reach their advisor, David Palmiter, who had moved to another brokerage firm without informing the clients.
Investors that suffered losses with David Palmiter and/or any other broker/financial advisor at Citizens Securities or Key Investment Services in Cicero, NY as well as any other location are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Under FINRA (Financial Industry Regulatory Authority), all registered financial professionals and their brokerage/advisory firms have a responsibility to recommend suitable financial offerings and trading strategies based on their customers’ financial interests.
FINRA Rule 2111 (Suitability) requires that brokerage firms and financial advisors have a “reasonable basis” for recommending investments or investment strategies to their clients.
A “reasonable basis” requires that a broker must perform “reasonable diligence” to understand the nature of a recommended security or investment strategy, along with the potential risks and rewards.
Investors should note that firms have a responsibility to supervise the activities and conduct of each of their registered brokers/investment advisors. As a FINRA-regulated brokerage firm, Citizens Securities is liable for failing to supervise David Palmiter. It is KlaymanToskes’ opinion that this alleged misconduct may indicate systemic supervisory issues throughout Citizen Securities’ office in Cicero, NY.
KlaymanToskes can help you determine if your investment loss is due to unsuitable investment advice or over-concentrations in your account. We offer free consultations and every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $250 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.
Contact
Lawrence L. Klayman, Esq.
888-997-9956