FINRA’s Department of Enforcement investigated Turner and alleged he engaged in unsuitable UIT investment recommendations on a short-term basis. Specifically, Turner recommended 39 unsuitable short-term Unit Investment Trust (“UIT”) transactions between March 2012 and August 2013. According to FINRA, UITs are generally intended as longer-term investments for various reasons, including but not limited to their attendant fees. Nevertheless, the average holding period for the UITs recommended by Turner was only 143 days, and as a result, his customers allegedly incurred additional sales charges and suffered losses of approximately $10,635.78.
Based upon the foregoing misconduct, FINRA alleged Turner violated NASD Rule 2310, as well as FINRA Rules 2010 and 2111. Specifically with respect to NASD Conduct Rule 2310, financial advisors are required to recommend suitable investments and investment strategies to their clients (known as the suitability rule). Here, FINRA’s theory of liability involved allegations that Turner’s short-term UIT investment recommendations were unsuitable for his clients – especially give their short holding periods.
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 in a mutual fund with Turner through Cambridge Investment or Securities America, 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.