Broker Ronald Birnbaum Involved In Investor Disputes
The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of misconduct by securities broker Ronald Birnbaum (CRD#: 2382580, Newton, Massachusetts). Evidently, Birnbaum works for Advisory Group Equity Services Ltd. as a stockbroker and Trust Advisory Group Ltd. as a financial advisor. Notably, he is involved in six investor disputes. Evidently, half of those disputes come from this year alone. Here’s more on the disclosures.
Advisory Group Equity Services Ltd. Investor Indicates That Ronald Birnbaum Sold Unsuitable Investments
Evidently, a client of Advisory Group Equity Services Ltd. brought a FINRA Arbitration Claim dated May 2020. First of all, the client alleged that Birnbaum failed to perform due diligence on investments he sold to the customer. Secondly, Birnbaum supposedly overconcentrated the client’s assets in alternative investments. It appears that Birnbaum may have sold unsuitable DPP or LP interests that caused the client to experience losses. For this reason, the client demanded $200,000.00 from Advisory Group Equity Services in this ongoing matter.
Birnbaum Supposedly Overconcentrates Customer’s Account In Interval Fund
Evidently, a second Advisory Group Equity Services client brought suit to challenge Ronald Birnbaum’s trading or recommendations. In this April 2020 FINRA Arbitration Claim, the client alleges that Birnbaum invested too much of the client’s assets in an interval fund. Mainly, an interval fund is a closed-end fund that does not trade on the secondary market. Namely, interval funds can be highly illiquid and can pose unique risks for those investors who seek liquidity and high yields. The securities broker allegedly sold the client investments which did not seem to fit with the their investor profile. Therefore, the client asked for $75,000.00 in damages. As of October 19, 2020, this matter is ongoing.
Prior Disputes About Ronald Birnbaum
Notably, a pending March 2020 dispute raises the same allegations of sales practice violations against Ronald Birnbaum: suitability, overconcentration and lack of due diligence. Also, in a pending 2017 lawsuit, an Advisory Group Equity Services client indicated that they invested in a bad private placement corporate bond. Apparently, the bond issuer filed for bankruptcy.
Moreover, in a 2016 dispute, a client alleged that Ronald Birnbaum breached a fiduciary duty. That client supposedly invested in unreasonable oil and gas securities and real estate securities. Allegedly, Advisory Group Equity Services failed to supervise these transactions. Evidently, the client received a $50,000 payment in 2016 as a condition of resolving this dispute.
Losses From Broker Birnbaum?
FINRA BrokerCheck indicates that Ronald Birnbaum denies all allegations of misconduct. Have you experienced losses by investing with Ronald Birnbaum? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Birnbaum.