Salas Wang LLC is launching an investigation into Alton Securities Group Inc. for recommending unsuitable investments to clients. Â Specificially, a FINRA disciplinary action recently disciplined one of Alton’s supervisors for failing to supervise one of Alton Securities Group’s employees, specifically:
[Alton Securities Group broker]Â periodically recommended and sold complex products to his customers. For example, at various times during the Relevant Period, [he]Â recommended and sold leveraged/inverse exchange traded funds and leveraged/inverse mutual funds. In addition, MM recommended and sold a “steepener note,” designed to increase in value as the gap between short and longterm interest rates increased. MM, however, lacked a reasonable basis to recommend these products to his customers because he did not fully understand the potential risks associated with these securities.
[Alton Securities Group broker]Â also recommended and executed 50 unsuitable purchases of Class A shares of leveraged/inverse mutual funds. Because oftheir fee structure, Class A mutual fund shares are generally preferable to Class B or C shares only when held for several years or longer. [The]customers who purchased the Class A shares, however, typically held them for less than a year, and in some cases, only for several months. As a result, [the broker]’s recommendations of Class A shares of leveraged/inverse mutual funds were unsuitable.
If you are an investor that lost money investing with Alton Securities Group or in these leveraged ETFs, or have purchased Class A shares of mutual funds for short term investments you may be able to recover your losses through FINRA arbitration or securities litigation. Â You can contact Jeff Salas at 312.803.4963 or through the contact form below.
{ 0 comments… add one now }