In March 2018, a former client of Allegis Investment Services, LLC won an award in a FINRA arbitration for compensatory damages, prejudgment interest and fees for $404,482.41. The investors were clients of financial advisor Brandon Stimpson (CRD# 4299623).
The former customer was awarded compensatory damages in the amount of $270,452.34, as well as $53,730.07 in prejudgment interest, 10% per year post-judgment interest until the amount is paid in full, $20,000 in costs and fees, $60,000 in attorney’s fees, and $300 reimbursement of the non-refundable filing fee.
The causes of action included unsuitability; unauthorized trading, failure to supervise; and breach of fiduciary duty. The causes of action relate to the buying and selling of unspecified index put options tied to the performance of the Russell 2000 Index. The FINRA arbitration hearing was conducted in Salt Lake City, Utah.
Stimpson was registered with Allegis Investment Services, LLC in North Logan, Utah from 2014 to December 2017, when he was terminated regarding, “Advisor failed to follow firm policies and code of ethics.”
In addition to the case above, Stimpson has been the subject of eight customer complaints between 2015 and 2017, one of which was withdrawn and three were closed without action, according to his CRD report:
- 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.
- 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.
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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