Erez Law is currently investigating former Ausdal Financial Partners, Inc. broker Richard Duncan (CRD# 73262) regarding unsuitable investment recommendations related to a Turkish investment. He was registered with Ausdal Financial Partners, Inc. in East Longmeadow, Massachusetts from 2017 to 2019, when he was terminated regarding, “failure to follow firm policies and procedures regarding loans with clients and lack of timely notification of a break-in at his branch office. (Mr. Duncan’s registration with the firm was advisory only.)”
In August 2019, the Securities and Exchange Commision (SEC) opened an investigation against Richard Duncan alleging that he defrauded “two advisory clients who were retail investors by persuading them to invest over $300,000 in an apparent scam originating in Turkey.” According to the SEC complaint, “Duncan also made materially false and misleading statements to at least one client, promising as much as a 100% return on the Turkish investment.”
In March 2022, the SEC entered a final judgment against Richard Duncan after it was found that he “defrauded two advisory clients who were retail investors by persuading them to invest in a scam originating in Turkey. Among other things, the court ordered Duncan to pay a total of over $530,000.”
According to the SEC it is “alleged that Duncan breached his fiduciary duty as an investment adviser by ignoring, and failing to disclose, warnings from two banks that the Turkish investment opportunity was probably a scam. The complaint further alleged that Duncan made materially false and misleading statements to at least one client, promising as much as a 100% return on the Turkish investment.”
The SEC found that he omitted and misrepresented important facts in order to obtain investments from his clients, as well as failed to disclose conflicts of interests and he failed to investigate a questionable investment. As part of the final judgment, he was ordered to pay $104,080 in disgorgement as well as prejudgment interest in the amount of $14,716, and a $414,366 civil penalty.
Richard Duncan Customer Complaints
He has been the subject of two customer complaints between 2020 and 2022, according to his CRD report:
March 2022. “Unsuitable investments.” The customer is seeking $1.5 million in damages and the case is currently pending. The complaint was regarding leveraged and inverse exchange traded funds (ETFs) and a personal loan and took place while he was registered with Ausdal Financial Partners, Inc.
July 2020. “Unsuitable investments.” The customer is seeking $405,045 in damages and the case is currently pending. The complaint was regarding common and preferred stocks and private securities transactions and took place while he was registered with Ausdal Financial Partners, Inc.
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, Ausdal Financial Partners, Inc. may be liable for investment or other losses suffered by Richard Duncan’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.