According to FINRA, Ariola recommended that three elderly retiree investors invest in unsuitable gold and energy stocks, which tend to be risky investments and can lead to large losses. FINRA alleged that these recommendations were unsuitable because they were not appropriate given each investor’s financial circumstances, investment objectives and low risk tolerances. To make matters worse, Ariola’s recommendations were unsuitable from a quantitative perspective because the recommendations resulted in each account becoming concentrated in gold and energy stocks.
Based upon the foregoing misconduct, FINRA alleges Ariola violated NASD Conduct Rules 2310, 3050(c), and FINRA Rule 2010. For example, NASD Conduct Rule 2310 requires that “in recommending to a customer the purchase, sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such customer as to his other security holdings and as to his financial situation and needs.”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages investing with Ariola through Bay Mutual Financial, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.