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Notice to Jack Teboda Customers: $750K Unsuitable Alternative Investment Complaint Filed

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Updated on: March 9, 2023

Attention Illinois Investors: Investment Losses with Jack W. Teboda? Contact KlaymanToskes for Recovery Options

National investment fraud lawyers KlaymanToskes issues a notice to Jack William Teboda (CRD# 864760) customers after the previously registered Proequities, Inc. (now known as Concourse Financial Group) broker and investment advisor received six investor complaints alleging he recommended unsuitable alternative investments, with the most recent complaint alleging $750,000 in investor damages

Investors that suffered losses with Jack W. Teboda may be entitled to a financial recovery. Contact attorney Lawrence L. Klayman immediately at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss your legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Jack Teboda Customer Complaints Alleging Unsuitable Investments

According to Jack William Teboda’s FINRA Brokercheck Report, the broker has six investor complaints filed against him. 5 of 6 have been settled in favor of the investors. The most recent complaint is pending. Teboda was registered with Proequities, Inc. from 1998 to 2016 in Elgin, IL. In July 2021, Proequities changed its name to Concourse Financial Group.

  1. Investor alleges Teboda violated his fiduciary duty by recommending unsuitable alternative investments and and equity indexed annuities.
    • Pending – alleged damages $750,000 (Filed February 7th, 2023)

  2. Investor alleged Teboda’s sale of two non-­traded Real Estate Investment Trusts (“REITs”) were unsuitable considering the customer’s time horizon and risk tolerance. The customer argues that the sale of these REITs by Mr. Teboda constitutes breach of fiduciary duty, fraud and misrepresentation, unjust enrichment, breach of contract, negligence, and violations of Illinois Securities Law and FINRA Rules.
    • Settled in favor of the investor for $92,500 (Filed July 5th, 2017)

  3. Investor alleged Teboda advised him to invest monies in products that were unsuitable for him due to his financial situation, investment experience, risk tolerance, and investment needs. The customer’s allegations include but are not limited to misrepresentation of investments, negligent account management, breach of contract and breach of fiduciary duty. 
    • Settled in favor of the investor for $40,000 (Filed May 1st, 2015)

  4. Investors alleged Teboda, without their prior authorization, invested their monies with various investment accounts, specifically, a Behringer Harvard REIT and multiple long-term annuities with Aviva and Allianz for annuity dates of 10-30 years and that Teboda failed to disclose material information in regard to those investments. Investors further allege breach of fiduciary duty; unjust enrichment; fraudulent concealment; violation of consumer fraud; and accounting.
    • Settled in favor of the investors for $51,700 (Filed February 3rd, 2014)

  5. Investors alleged Teboda invested their monies in an American Inland REIT, that he failed to disclose material information in regard to that investment, and that the investment was unsuitable. Investors further alleged misrepresentation; negligence; breach of fiduciary duty; common law fraud; accounting; conversion; promissory estoppel; unjust enrichment; violation of Illinois state securities law; failure to supervise; and failure to observe standards of common honor.
    • Settled in favor of the investors for $68,000 (Filed January 2nd, 2013)

  6. Investor alleged suitability concerns with regards to the sale of an investment.
    • Settled in favor of the investor for $11,200 (Filed April 27th, 2005)

How Can I Recover My Losses?

Unfortunately, many investors are not aware of the risks and liquidity problems associated with alternative investments, including Non-traded REITs, which are considerably more complex than traditional stocks and mutual funds, and involve a high degree of risk due to being illiquid.

According to securities attorney, Lawrence L. Klayman, “Alternative investments are subject to risks that are not easily understood by many investors. Brokerage firms and their registered financial professionals have a responsibility to disclose and fully explain these risks before recommending any alternative financial products, including non-traded REITs, as they are often high-risk, have limited liquidity, and carry high expenses and fees.”

If your stockbroker or financial advisor recommended unsuitable alternative investments based on your investment profile, misrepresented material facts when making an investment recommendation, disregarded your risk-tolerance when making investment recommendations, or over-concentrated your portfolio in too many alternative investments, a Financial Industry Regulatory Authority (“FINRA”) securities arbitration claim may be the best solution to recover investment losses. 

Investors that suffered losses with Jack W. Teboda are encouraged to contact attorney Lawrence L. Klayman, Esq. immediately for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Unsuitable Investment Recommendations: What Can Investors Do?

FINRA (Financial Industry Regulatory Authority) is responsible for regulating all U.S. brokers and brokerage firms doing business with those in the United States and other countries. Under FINRA suitability requirements (FINRA Rule 2111) brokers and brokerage firms have a duty to recommend suitable financial products and trading strategies based on their client’s financial interests.

Facts about each investor, such as their financial situation/needs, age, employment status, tax status, investment objectives and experience, risk tolerance, and what other investments they may be holding must be taken into consideration by brokers/financial advisors in order to meet the “reasonable diligence” requirement of FINRA’s suitability rule. These factors help determine the suitability of a particular investment or investment strategy for a particular investor.

KlaymanToskes can help you determine if your investment loss is due to unsuitable investment advice. Depending on your circumstances, you may be entitled to recover losses through FINRA arbitration. KlaymanToskes works on a contingency basis, meaning we do not collect a fee unless we are able to obtain a financial recovery for you. 

Contact attorney Lawrence L. Klayman today for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com

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 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. 

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com