Investor Alert: Eric S. Darty Permanently Barred by FINRA for Unauthorized Transactions
Posted on Monday, March 13th, 2017 at 5:02 pm
Erez Law is currently investigating former BBVA Securities Inc. financial advisor Eric S. Darty (CRD# 6314905) regarding unauthorized transactions in customer accounts. Dart was registered with BBVA Securities in Birmingham, Alabama from 2014 to 2016 before the brokerage firm terminated his employment due to a “loss of confidence and trust by the firm as a result of a series of unauthorized transactions involving accounts or funds of customers of the Firm and of the firm’s affiliate bank.”
According to the Acceptance, Waiver & Consent (AWC), Darty failed to produce documents and information requested by FINRA during the course of an investigation into allegations of conversion and unauthorized transactions involving accounts or funds of customers. FINRA has permanently barred this individual from acting as a broker or otherwise associating with firms that sell securities to the public.
As of March 2017, Darty has been the subject of one customer complaint, according to his CRD report:
April 2015. “Customer purchased mutual fund in november, 2014. Firm received communication from attorney engaged by the customer’s son and attorney-in-fact who claims that the transaction was not suitable for customer.” The customer sought $15,000 in damages and the case was settled for $7,073.78.
A broker must have reasonable grounds for each recommendation made to investors considering such factors as the customer’s other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers a security to its customers, the firm must conduct due diligence, investigating the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investment for a particular individual is at the center of the investment process and one of the key duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.
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, BBVA Securities Inc. may be liable for investment or other losses suffered by Darty’s customers.
Erez Law represents investors in the United States for claims against BBVA Securities Inc. financial advisor Eric S. Darty, who is alleged to make unauthorized transactions in customer accounts. If you were a client of BBVA Securities Inc. financial advisor Eric S. Darty 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.