Erez Law is currently investigating Janney Montgomery Scott LLC financial advisor Richard Baum (CRD# 15065) regarding unsuitable over concentration in the high risk energy sector. Baum has been registered with Janney Montgomery Scott LLC in Boston, Massachusetts since 2014. Previously, he was registered with Oppenheimer & Co. Inc. in Boston, Massachusetts from 2005 to 2014.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
It has been reported that back in June 1991, Baum was suspended for three weeks and sanctioned to a monetary fine of $10,000 following a three-year investigation conducted by the division of enforcement of the New York Stock Exchange (NYSE) concerning failing to reasonably discharge his duties and obligations as an assistant branch manager in connection with his supervision and control of the activities of one or more individuals by failing to detect and prevent two registered representatives from excessively trading account of customers and failing to prevent a registered representative from soliciting orders for the purchase of a security not recommended by his former member firm.
Baum has been the subject of one customer complaint, according to his CRD report:
August 2017. “Claimants allege that FA unsuitably concentrated their accounts in energy stocks.” The customer is seeking $930,000 in damages and the case is currently pending.
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, Janney Montgomery Scott LLC may be liable for investment or other losses suffered by Baum 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.