Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:
CETERA INVESTMENT SERVICES, LLC, and their registered representative,
THOMAS D BRUNT (Respondents).
The Claimant is retired and living in Tennessee who brought a claim for losses in JP Morgan Linked Notes to ARK Innovations EFT that dropped over 60%. The Claimant was looking for conservative investments to sustain him and his wife through retirement. The Claimant had approximately $100k in his IRA account and was looking to invest conservatively to generate income for retirement. The Claimant was referred to CETERA INVESTMENT SERVICES representative THOMAS D BRUNT in 2020. The lawsuit alleges that Brunt told the Claimant to put his money into a “safe bond.” BRUNT sold the Claimant annuities and a JP Morgan Chase Financial Note linked to ARKK, which is the ARK Innovation ETF that plummeted over 60% year to date. The lawsuit states that the Claimant had no idea that the “bond” sold to him could be more volatile than the stock market.
The lawsuit alleges there was not an adequate system in place at CETERA which allowed their employee/registered representative to sell the Claimant a high risk structured product in his IRA. The Claimant placed his trust in his broker. FINRA NTM 05-59 states that “Guidance for the sale of Structured Products” required Respondent when selling structured products to:
(1) provide balanced disclosure in promotional efforts;
(2) ascertain accounts eligible to purchase structured products;
(3) deal fairly with customers with regard to derivative products;
(4) perform a reasonable-basis suitability determination;
(5) perform a customer-specific suitability determination;
(6) supervise and maintain a supervisory control system; and
(7) train associated persons.
The lawsuit alleges that it is clear from the trade placed by the Respondents that they did not perform the 7 steps required before selling structured products.
The lawsuit alleges that CETERA and their representative, THOMAS D BRUNT’s actions have caused Claimants damages of approximately $60,000.00, and is alleging negligence, breach of fiduciary duty and negligent supervision. It is assumed the Respondents will deny the allegations.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, THOMAS D BRUNT, has been in the securities industry for 5 years and has been listed with 3 firms. He is currently listed both as a broker and investment advisor with the following firm:
CETERA INVESTMENT SERVICES LLC
640 NORTH GERMANTOWN PKWY
CORDOVA, TN 38018
If you’ve experienced financial losses due to the actions or recommendations of THOMAS D BRUNT of CETERA INVESTMENT SERVICES of Cordova, Tennessee, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA on a contingency basis, no cost to you if no recovery.