The Financial Industry Regulatory Authority (FINRA) has censured and fined, Advisor Group subsidiary, Triad Advisors, over $700,000 for alleged recommendations of an alternative mutual fund, LJM Preservation & Growth Fund (LJM), that allegedly cost clients hundreds of thousands of dollars in financial losses, according to a recent article in Financial Advisor IQ.
According to FINRA, Triad Adviors allegedly sold approximately $2.27 million in LJM Preservation & Growth Fund to 58 clients. LJM’s value dropped 80% due to market volatility in February of 2018 and the fund eventually closed, according to the FINRA letter of acceptance.
FINRA stated that from September of 2016 to February of 2018, Triad Adviors allegedly failed to adequately supervise their representatives’ recommendations in the LJM. According to FINRA’s Acceptance, Waiver, and Consent (AWC), Triad allegedly “pursued a risky strategy that relied, in part, on purchasing uncovered options.”
FINRA also stated that from March of 2014 to January of 2019, Triad Adviors allegedly failed to obtain customer account information for the clients buying private offerings of LJM Partners and LJM Preservation & Growth Fund and failed to enforce supervisory procedures obtaining the information.
Recently, Triad Advisors consented to a censure, a $195,000 fine, and over $510,000 in restitution, plus interest, without admitting or denying FINRA’s findings, according to FINRA’s AWC.
If you’ve suffered losses in LJM Preservation & Growth Fund due to the recommendations of brokers/financial advisors from Triad Adviors or any other broker/dealer, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of you investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA. We work on a contingency fee basis, which means there is no fee to you if we do not recover your losses.