Erez Law is currently investigating H. Beck, Inc. financial advisor James Dresselaers (CRD# 1106109) regarding his recommendations to invest in unsuitable exchange-traded funds (ETFs). Dresselaers has been registered with H. Beck, Inc. in Bethesda, Maryland since 2003.
In October 2017, FINRA fined Dresselaers $10,000 in civil and administrative penalties and fines, sanctioned him to $18,708 in disgorgement, and suspended him for 60 days after the regulatory agency found that he, “recommended to the firm’s customer, investments in several nontraditional exchange-traded funds (ETFs) and stocks issued by companies in the metals and mining sector and these recommendations were unsuitable for the customer, a professional athlete with no investment experience, a moderate risk tolerance, and an investment objective of long-term growth,” according to the Acceptance, Waiver & Consent (AWC). The professional athlete had a moderate risk tolerance and was looking to achieve long-term growth through retirement.
“The findings also stated that notwithstanding the customer’s investment profile, Dresselaers recommended that the customer invest more than $2.3 million in nontraditional ETFs, including leveraged, inverse ETFs. Dresselaers then recommended that the customer hold these investments for extended periods of time, some for more than five years.” FINRA found these recommendations to be unsuitable, causing the customer to lose a total of $851,175 on these investments.
It is alleged that Dresselaers also recommended that the customer invest approximately $500,000 in several different equities, including $375,000 in stocks issued by companies in the metals and mining sector. These investments concentrated about 65% of the customer’s portfolio in the metals and mining sector, which exposed the customer to the risk of significant losses when the market declined, and caused the client to lose 264,618. “Dresselaers’ recommendations of nontraditional ETFs and metals and mining stocks were not suitable for the customer and these securities were not consistent with the customer’s stated investment objective of long-term growth and moderate-risk tolerance. The customer suffered losses of more than $1.1 million on these investments,” according to the AWC.
Dresselaers has been the subject of one customer complaint, according to his CRD report:
December 2015. “Statement of Claim alleges that registered representative recommended unsuitable investments in Exchange Traded Funds and equity securities, and failed to explain the risks associated with these investments.” The customer sought $917,314 in damages and the case was settled for $1,500,000.
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, H. Beck, Inc. may be liable for investment or other losses suffered by Dresselaers’ customers.
Erez Law represents investors in the United States for claims against H. Beck, Inc. financial advisor James Dresselaers regarding his recommendations to invest in unsuitable exchange-traded funds (ETFs). If you were a client of H. Beck, Inc. or another firm, 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.