National investment fraud lawyers KlaymanToskes is investigating Mike Persinski (CRD# 1478332) of Citigroup Global Markets and Merrill Lynch in connection with the filing of a customer complaint alleging $56 million in damages due and failure to act in the customers’ best interest, related to a concentrated position and recommendation to to use a line of credit to further concentrate the customers’ assets.
According to FINRA BrokerCheck, Michael Thomas Persinski a/k/a Mike Persinski was previously registered as a broker with Citi Private Advisory and as an investment advisor with Citigroup Global Markets in Miami, FL. Currently, Persinski is registered as a broker/advisor with Merrill Lynch in Coral Gables, FL.
Investors that suffered losses with Mike Persinski and/or any other advisor at Citigroup, Citi Private Advisory, or Merrill Lynch are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation to discuss recovery options at 888-997-9956 or email@example.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, Mike Persinski has one customer complaint disclosed. The complaint is pending and alleges $56,000,000 in damages to the customer’s Citigroup account.
The customer further alleged breach of fiduciary duty, negligence, fraud, breach of contract, third party beneficiary breach of contract, violation of the SEC’s Regulation Best Interest (Reg BI), and negligent supervision related to failure to provide advice on a concentrated position. The customer further alleged an unsuitable recommendation to use a line of credit to further concentrate their assets.
Concentration or “failure to diversify” is a securities violation that occurs when a financial professional concentrates an investor’s assets in one particular investment, class of investments, or market sector. Holding large concentrated stock or investment positions may pose significant downside risks for investors.
Brokerage firms and their registered financial professionals have a responsibility to ensure that their customers understand the risks associated with concentration, and to disclose and recommend the risk management strategies which can be used to protect the value of the concentrated portfolio.
When full-service brokerage firms and their advisors recommend concentrated positions, they can be held liable in FINRA arbitration claims.
KlaymanToskes can help you determine if your investment loss is the result of a securities violation such as overconcentration. Contact attorney Lawrence L. Klayman today for a free consultation at (888) 997-9956 or firstname.lastname@example.org.
SEC Regulation Best Interest, a/k/a “Reg BI” establishes a “best interest” standard of conduct for brokers and brokerage firms making recommendations of securities investments and investment strategies to their customers, under the Securities Exchange Act of 1934.
Under Reg BI, investment advisors and their firms have a responsibility to make recommendations with their customer’s best interest in mind, based upon the client’s personal needs and preferences. Additionally, a representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
Brokers and financial advisors must consider an investment’s risk, ensure that they do not misrepresent material facts, and/or overconcentrate the customer’s portfolio. Further, financial professionals and their firms cannot disregard a customer’s risk-tolerance when making unsuitable investment recommendations.
Former and current customers of Mike Persinski who sustained losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or email@example.com for a free consultation. 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.