Erez Law is currently investigating Waddell & Reed broker Donald Logan (CRD# 5537486) regarding unsuitable investment recommendations. Logan has been registered with Waddell & Reed in Silverdale, Washington from 2015 to 2018, when he was terminated regarding, “RR terminated for possession of multiple blank client-signed forms and altered client-signed documents, in violation of the firm’s policies.” Previously, Logan was registered with Edward Jones in Silverdale, Washington from 2008 to 2015, when he was terminated regarding, “violated firm’s policy regarding discretionary orders.”
In January 2019, FINRA sanctioned Logan to a $25,000 civil and administrative penalty and fine as well as an 18 month suspension, after he “consented to the sanctions and to the entry of findings that he exercised discretionary trading authority in customer accounts without obtaining prior written authorization from his customers or prior written approval from his member firms. The findings stated that Logan executed unauthorized transactions in customer accounts without their knowledge or consent. The findings also stated that Logan caused customers to sign blank or incomplete account-related forms, intending to later use them in connection with customer transactions. The findings also included that Logan willfully failed to timely amend his Form U4 to disclose civil judgments and a compromise with a creditor and never disclosed one judgment.”
Logan has been the subject of five customer complaints between 2015 and 2019, two of which were denied, according to his CRD report:
December 2019. “Attorney for client alleges RR provided unsuitable investment recommendations related to the purchase of a VUL policy in June 2018.” The case is currently pending. The complaint was regarding insurance.
April 2019. “Client alleges that the recommendation by her RR to purchase a long term care policy in 2017 was not sound advice and, withdrawing the funds from her ira to pay the initial premium on the policy caused her to pay unexpected, additional income and property taxes for the year. She is seeking reimbursement of those taxes.” The customer sought $8,225 in damages and the case was settled for $7,795.14. The complaint was regarding insurance and mutual funds.
July 2015. “Client alleges the financial advisor informed him the returns from investments would pay the premiums for an AG Secure Survivor Gul II policy purchased in May 2015. Client requests that the policy be canceled and the premiums returned.” The customer sought $5,000 in damages and the case was settled for $22,721. The complaint was regarding insurance.
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, Waddell & Reed may be liable for investment or other losses suffered by Logan’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.