FINRA’s Department of Enforcement investigated Tautges-Parisian’s alleged misconduct and determined she recommended two unsuitable investments in one of her customer’s accounts. As a preliminary matter, the customer was very unsophisticated and had a relatively meager liquid net worth. Nevertheless, in May 2009, Tautges-Parisian recommended that the customer invest $14,904 in 8,000 shares of Oceanfreight, Inc. (“UOCNF”) stock, which was a penny stock. In November 2009, Tautges-Parisian recommended that the customer invest another $7,000 in UOCNF to lower the cost-bases in the position. However UOCNF did not recover substantially in value, and the customer suffered approximately $16,000 in losses or roughly a quarter of his liquid net worth. According to FINRA, Tautges-Parisian’s recommendations were made without reasonable grounds for believing that they were suitable for the customer.
Based upon the foregoing alleged misconduct, FINRA contends Tautges-Parisian violated NASD Conduct Rules 2310 and FINRA Rule 2110. Under NASD Conduct Rule 2310, financial advisors are required to recommend suitable investments and investment strategies to their clients (known as the suitability rule). Typically, a claim for unsuitable investments is brought as a form of a negligence claim with the theory: the financial advisor had a duty to recommend suitable investments; the financial advisor breached the duty with unsuitable investments; and the financial advisors unsuitable investments caused the investor damages.
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 losses and damages investing with Tautges-Parisian through Ameriprise, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.