Former Stifel, Nicolaus & Company, Inc. Client Wins FINRA Arbitration for $500,000 for Unsuitable Investment Recommendations
Posted on Tuesday, May 5th, 2020 at 8:33 pm
In February 2020, a former client of Stifel, Nicolaus & Company, Inc. won an award in a FINRA arbitration for compensatory damages for $500,000 for investment losses. The investors were clients of broker John Lisowski (CRD# 1011572).
The causes of action included “unsuitability, churning, violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (“UTPCPL”), violations of the Pennsylvania Securities Act, breach of fiduciary duty, common law fraud, suitability, negligence, breach of contract, breach of the duty of good faith and fair dealing, failure to supervise, respondeat superior, and vicarious liability. The causes of action relate to Claimant’s allegation that Lisowski, while employed as a financial advisor by Stifel, mishandled Claimant’s account by failing to recommend and implement a suitable investment strategy or appropriate asset allocation, including over-concentrating Claimant’s account in General Electric (GE), Range Resources (RRC), and U.S. Steel Corporation (X) securities. Claimant further alleges that Lisowski placed unauthorized option trades, engaged in excessive trading, and invested Claimant’s funds in unsuitable securities, including Barrick Gold (ABX), Cliff’s Natural Resources (CLF), General Cable Corporation (BGC), MannKind (MNKD), and ProShares UltraShort 20+ Year Treasure (TBT), causing Claimant to incur substantial damages.” The FINRA arbitration hearing was conducted in Pittsburgh, Pennsylvania.
Lisowski has been registered with Stifel, Nicolaus & Company, Incorporated in Pittsburgh, Pennsylvania since 2007. Lisowski has also been the subject of one additional customer complaint in 2008 that was denied, according to his CRD report:
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, Stifel, Nicolaus & Company, Inc. may be liable for investment or other losses suffered by Lisowski’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.