Former Janney Montgomery Scott LLC Financial Advisor Randy Lee Bostick Barred by FINRA
Posted on Friday, June 9th, 2017 at 10:28 am
Erez Law is currently investigating former Janney Montgomery Scott LLC financial advisor Randy Lee Bostick (CRD# 2944482) regarding recommending investment portfolios concentrated in unsuitable Puerto Rico bonds. Bostick was registered with Janney Montgomery Scott LLC in Palm Beach Gardens, Florida from 2007 to 2014.
Puerto Rico suffers from long-term financial and economic deficiencies that rendered its credit increasingly more speculative. The deterioration of Puerto Rico’s financial condition culminated in its debt being downgraded to junk status or speculative (below investment grade). For the past several years, Puerto Rico has been struggling with compounding debt and economic decline. As a result, the value of Puerto Rico’s municipal tax-free bonds has considerably fallen. Since September 2013, when the steep decline in Puerto Rico bond values began, investors holding these bonds have suffered massive losses. In May 2017, Puerto Rico filed for bankruptcy protection from creditors in what is being described as the largest municipal bankruptcy filing in history.
Puerto Rico bonds were high risk investments and only appropriate for customers of Randy Lee Bostick who were interested in taking a high degree of risk with their investments. If Bostick failed to disclose the high degree of risk, he may have recommended unsuitable investments or violated his disclosure obligations to his clients. Moreover, if Bostick concentrated his clients in Puerto Rico bonds, this only increased the level of risk to which they were exposed and likely caused more losses when the bonds declined. This may have been unsuitable as well.
In March 2016, FINRA suspended Bostick after he failed to respond to a FINRA request to provide information concerning the status of compliance.
In February 2015, FINRA barred Bostrick after he failed to respond to FINRA request for information. According to his CRD, ”Respondent failed to request termination of his suspension within three months of the date of the notice of suspension; therefore, he is automatically barred from association with any finra member in any capacity.”
Bostick has been the subject of six customer complaints between 2013 and 2017, two of which were denied, according to his CRD report:
March 2017. “The client through his attorney alleges that the financial advisor made unsuitable and unauthorized purchases of municipal bonds in the client’s account.” The customer is seeking $328,668.14 in damages and the case is currently pending.
August 2016. “Claimant alleges that unsuitable investments were placed in his trust account.” The customer is seeking $100,001 in damages and the case is currently pending.
February 2016. “Claimants allege that poor recommendations were made in the account.” The customer sought $55,000 in damages and the case was settled for $15,000.
March 2013. “New Jersey client complained that a series of transactions in September 2012 were unauthorized.” The customer sought $17,423.60 in damages and the case was settled for $9,000.
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, Janney Montgomery Scott LLC may be liable for investment or other losses suffered by Bostick’s customers.
Erez Law represents investors in the United States for claims against former Janney Montgomery Scott LLC financial advisor Randy Lee Bostick, who is alleged to recommend investment portfolios concentrated in unsuitable Puerto Rico bonds. If you were a client of former Janney Montgomery Scott LLC financial advisor Randy Lee Bostick 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.