National investment loss lawyers KlaymanToskes is investigating Shawn Spellacy (CRD# 2275119) of Calton & Associates in connection with the filing of a customer complaint alleging $719,415 in damages due to risky and unsuitable investment recommendations in common and preferred stock.
Investors that suffered losses with Shawn Spellacy at Calton & Associates in Fair Oaks, 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, Shawn Conan Spellacy has eight public disclosures including three customer complaints. Spellacy’s most recent complaint is pending and alleges $719,415 in damages to the customer’s Calton & Associates account due to risky and unsuitable investments.
A previous complaint against Spellacy alleged misrepresentations and omissions, violation of California corp. securities law, breach of fiduciary duty, and other securities violations. The complaint was settled in favor of the investor for $99,000.
In addition, Spellacy’s third customer complaint was settled in favor of the investor for $50,000 and alleged misrepresentation and breach of fiduciary duty related to 1031 Exchange investment recommendations.
In accordance with FINRA Rule 2111 brokers/financial advisors and their firms have a duty to recommend suitable financial products and trading strategies based on their client’s financial interests and needs. Suitability requires that brokerage firms and financial advisors have a “reasonable basis” for recommending investments or investment strategies to their clients.
According to FINRA, a “reasonable basis” requires that a broker/investment advisor must perform “reasonable diligence” to understand the nature of a recommended security, along with the potential risks and rewards.
Brokers and financial advisors must 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 when making unsuitable investment recommendations.
In addition, the SEC’s Regulation Best Interest (Reg BI) requires brokerage firms and their brokers/financial advisors to make recommendations with their client’s best interest in mind, based upon the client’s financial needs, age, and investment objectives. KlaymanToskes can help you determine if your investment loss is due to unsuitable investment advice.
The violations discussed above each provide a basis for liability in a FINRA arbitration claim. FINRA arbitration is a more cost-effective process for investors, often occurring with increased speed and efficiency over a court proceeding. To learn more about FINRA Arbitration, see our recent post explaining the arbitration process, linked here.
If you suffered investment losses with Shawn Spellacy and/or any other broker/financial advisor at Calton & Associates, contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.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.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com