On April 18, 2018, FINRA announced it suspended Walter Parker from associating with firms registered with FINRA for one month. FINRA (Financial Industry Regulatory Authority, Inc.) registers and regulates securities brokers and brokerage firms.
In a Letter of Acceptance, Waiver and Consent (AWC), FINRA stated it suspended Walter Parker for violating NASD Rule 2310 and FINRA Rule 2111, which prohibit brokers from recommending unsuitable investments to their clients.
FINRA said Parker violated the rules by recommending his client invest $290,000 in Real Estate Investment Trusts (REIT) that were illiquid, alternative investments.
The client reportedly was sixty-four years old and had an income of $48,000, a net worth of $450,000, and a liquid net worth of $109,000. The AWC states she had little prior investment experience, no experience with alternative investments, a moderate risk tolerance, and investment objectives of growth with income.
FINRA said the REITs were unsuitable to the client “given her age, risk tolerance, financial experience and liquidity.” The client was unable to sell at least one of the investments purchased for $75,000 due to its illiquidity and suffered significant losses in the REITs, according to FINRA.
Parker settled the client’s claim against him by paying her account losses. FINRA records state Parker previously settled four customer claims while two of his customers have pending claims against him. All of the claims alleged Parker made unsuitable investment recommendations to the customers.
Parker entered the securities industry in 1991. He became registered as a General Securities Representative with Titan Securities in August 2006 and remains associated with Titan.
Recovery Options for Losses Due to Unsuitable Investment Recommendations
Marquardt Law Office LLC would like to speak with you if you have invested with Walter Parker and believe you suffered losses within the past six years in alternative or non-standard equity investments. Examples of alternative investments include REITS, private equity, hedge funds, pooled investments such as direct participation programs, managed futures, and commodities, to name a few.
Alternative investments are risky and unsuitable for many investors. They are less regulated and often difficult to sell or otherwise convert to cash. Their losses are often hidden in statements reporting their purported market values when they have no market to price or sell them. Brokers selling or recommending them often receive large commissions and fees that are undisclosed to investors and create conflicts of interests.
Brokerage firms owe customers a duty to supervise their brokers to ensure they only recommend suitable investment products and strategies. Brokerages are required to closely scrutinize customer portfolios highly concentrated in alternative investments. Investors have the right to pursue claims against brokers and their firms when brokers recommend unsuitable alternative investments causing loses.
Contact Marquardt Law Office LLC for a free case evaluation if you suffered losses due to your broker recommending alternative or other unsuitable investments causing you losses.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.