Former Royal Alliance Associates, Inc. Financial Advisor Mark Perry Accused of Unsuitable Investments for Elderly Clients
Posted on Tuesday, January 16th, 2018 at 8:45 pm
Erez Law is currently investigating former Royal Alliance Associates, Inc. financial advisor Mark Perry (CRD# 1219294) regarding unsuitable investment recommendations to elderly clients. Perry was registered with Independent Financial Group, LLC in Mt. Pleasant, South Carolina from April to September 2015 and with Cambridge Investment Research, Inc. in Mt. Pleasant, South Carolina from March to April 2015. Previously, he was registered with Royal Alliance Associates, Inc. in Mt. Pleasant, South Carolina from 2003 to 2015, when he was terminated regarding, “Under internal review for violations of firm’s email correspondence policy
In connection with the firm’s review of a customer complaint, the firm reviewed email correspondence from mr. Perry to the customer that contained promissory and/or predictive statements, in violation of the firm policy.”
In September 2017, Perry consented to the FINRA sanctions and to the entry of findings that he made unsuitable investment recommendations to four elderly, retired customers, which caused them collectively to see realized and unrealized losses of approximately $200,000. FINRA found that Perry over concentrated the customers’ accounts in precious metal sector securities, and that he recommended that the customers purchase and hold leveraged mutual funds and/or Exchange Traded Funds (ETFs) in their accounts for extended time periods of up to 963 days, which was unsuitable for his customers. Additionally, FINRA found that Perry falsified the account records of the four elderly customers referenced above by misstating each customer’s risk tolerance in order to recommend that the customer purchase high-risk securities. FINRA also found that Perry sent emails to a customer that mislead and made promissory statements about the investments in the customer’s account. Perry also failed to disclose two customer complaints regarding trading losses to his member firms. Perry was sanctioned to 18 months suspension, which will end in March 2019.
Perry has been the subject of five customer complaints between 2014 and 2016, one of which was denied and one was closed without action, according to his CRD report:
June 2016. “Allegations of unsuitable investments.” The customer sought $134,000 in damages and the case was settled for $55,000.
October 2015. “customer letter alleged excessive and unauthorized trades in unsuitable investments led to losses contrary to their investment objectives, risk tolerance and their verbal instructions to the registrant.” The customer sought $60,000 in damages and the case was settled for $40,000.
December 2014. “Client alleges that the rep placed him into unsuitable investments and he has now incurred losses.” The customer sought $5,000 in damages and the case was settled for $75,000.
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, Royal Alliance Associates, Inc. may be liable for investment or other losses suffered by Perry’s 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.