FINRA’s Department of Enforcement brought a complaint against Ziesemer for the following alleged misconduct. FINRA alleged that, between January 2011 and December 2012, Ziesemer recommended two customers repeatedly sell UITs that they had held for short time periods (less than 12 months). According to FINRA, the aforementioned short-term UIT transactions resulted in approximately $160,000 in combined net losses for the two investors. On the other hand, Feltl received $64,815 in commissions from these transactions, whereas Ziesemer received $38,889 of that total.
Based upon the foregoing misconduct, FINRA alleges Ziesemer violated NASD Conduct Rule 2310 and FINRA Rules 2111 and 2010. FINRA Rule 2111, for example, requires financial advisors to recommend suitable investments and investment strategies to their clients (known as the suitability rule) based upon the client’s unique financial situation, including investment objectives and risk tolerance.
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 Ziesemer through Feltl, 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.