Former Allegis Investment Services, LLC broker Brandon Stimpson (CRD# 4299623) is accused of unsuitable investment recommendations in options. Stimpson was registered with United Planners’ Financial Services Of America A Limited Partner in Logan, Utah from May to June 2019. Stimpson was previously registered with Allegis Investment Advisors in North Logan, Utah from 2014 to 2017, when he was terminated regarding, “Advisor failed to follow firm policies and code of ethics.”
In June 2020, the state of Utah sanctioned Stimpson to pay a $125,000 civil and administrative penalty and fine and barred him after he allegedly, “misrepresented and omitted material facts in violation of Section 61-1-1(2)of the Utah Uniform Securities Act (Act), engaged in fraudulent practices in violation of Section 61-1-1(3) of the Act, unlawfully shared advisory compensation in violation of Section 61-1-2 of the Act and engaged in dishonest or unethical practices warranting sanctions under Section 61-1-6 of the Act.”
Stimpson has been the subject of nine customer complaints between 2015 and 2017, one of which was withdrawn and three were closed without action, according to his CRD report:
June 2019. “Unsuitability, overconcentration and unauthorized trading, deceptive practices, failure to supervise, breach of fiduciary duty.” The customer is seeking $2,481,000 in damages. This case is regarding options.
December 2017. “Breach of duties including fiduciary duty, breach of contract and negligence.” The customer sought $478,150 in damages and the case was settled for $48,000.
October 2017. “Client alleges that the options strategy that was active in the account was unsuitable and a trade in Aug 2015 cause the account a loss.” The customer is seeking $300,000 in damages and the case is currently pending. This case is regarding options.
January 2017. “Client alleges that the investment portfolio was high risk and was unsuitable for the client.” The customer sought $285,000 and the case was settled for $287,350.63. This case was regarding options.
June 2016. “Client alleges that the strategy in which the advisory account were invested in was unsuitable and a trade in August 2015 caused a loss to the client.” The customer is seeking $400,000 in damages and the case is currently pending.
November 2015. “Client alleges that a recent trade placed in the advisory account was outside the scope of the strategy.” The customer sought $64,629 in damages and the case was settled for $35,000. This case was regarding options.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Allegis Investment Services, LLC may be liable for investment or other losses suffered by Stimpson’s customers.
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