National investment loss lawyers KlaymanToskes is investigating Bill Schellenberg (CRD# 2376086) of Merrill Lynch and Sanctuary Securities, following the filing of a pending customer complaint alleging unsuitable investment recommendations in Private Placement investments, including Private Investment in Public Equity (“PIPES”) investments.
Investors that suffered losses with Bill Schellenberg at Merrill Lynch or Sanctuary Securities in Irvine, CA, are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation to discuss recovery options at 888-997-9956 or lawrence@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, William Alan Schellenberg a/k/a Bill Schellenberg is currently registered as a broker and investment advisor with Sanctuary Securities, Inc. in Aliso Viejo, CA. Schellenberg was previously registered with Merrill Lynch, Pierce, Fenner & Smith, Inc. from 1997 to 2022 in Irvine, CA.
Schellenberg has been hit with a customer complaint alleging damages to the customer’s Merrill Lynch account due to unsuitable investment recommendations in private placement investments including PIPES (Private Investment in Public Equity).
A PIPE, or Private Investment in Public Equity, is a non-public offering of securities from a company that is already publicly traded. These offerings are typically made to a specific group of accredited investors (often selected institutional accredited investors). When investors participate in a PIPE, they commit to purchasing securities through a formal purchase agreement. It’s common for the issuing company to be obliged to file a resale registration statement, which covers the securities purchased in the private placement and allows investors to potentially resell them at later points in time.
According to FINRA Regulatory Notice 10-22, “while the private placement market is an important source of capital for many U.S. companies, especially smaller issuers, FINRA has found significant problems in several recent examinations and investigations. These problems include fraud and sales practice abuses in Regulation D offerings. Recently, for example, broker-dealers were sanctioned for providing private placement memoranda and sales materials to investors that contained inaccurate statements or omitted information necessary to make informed investment decisions.”
Financial advisors and their firms have a fiduciary duty to recommend suitable investments that are in their customers’ best interests. Brokers/advisors must consider an investment’s risk, ensure that they do not misrepresent material facts, and/or overconcentrate the customer’s portfolio in unsuitable investments. Further, financial professionals and their firms cannot disregard a customer’s risk-tolerance or make unsuitable investment recommendations.
The violations discussed above each provide a basis for liability in a FINRA arbitration claim. To learn more about additional securities violations, see our account activity violations page. FINRA arbitration is a more cost-effective process for investors, often occurring with increased speed and efficiency over a court proceeding.
Former and current customers of Bill Schellenberg who suffered investment losses at Merrill Lynch or Sanctuary Securities are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com to discuss our investigation and recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
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 over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com