FINRA’s Department of Enforcement investigated Elliott and alleged he recommended unsuitable investments to at least three customers. Specifically, Corbman recommended unsuitable highly risky leveraged, inverse Non-Traditional ETFs and Notes to his customers regardless of the customers’ financial situations, moderate investment objectives and minimal tolerance for risk. In total, the customers lost approximately $24,850 because of their investments in Non-Traditional ETFs and ETNs.
FINRA also alleged Elliott exercised discretion in two customer accounts without written authorization from the customers to place discretionary trades. According to FINRA, Infinex did not allow discretionary trading in customer accounts, and had not accepted the accounts as discretionary.
Based upon the foregoing misconduct, FINRA alleged Elliott violated NASD Conduct Rule 2510(b), as well as FINRA Rules 2010 and 2111. 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. Here, FINRA alleged Elliott recommended risky investments that exceeded each customers’ risk tolerance and investment objectives.
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 Elliott through Infinex Investments, 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.