According to publicly available information through the Financial Industry Regulatory Authority (FINRA), dually registered stockbroker and investment adviser, Robert Ginsberg (Ginsberg, CRD# 5177531), has been named or otherwise involved in four pending customer disputes. Further, FINRA BrokerCheck indicates that these matters—including three pending securities arbitrations and a written customer complaint—generally concern allegations of unsuitable recommendations for various alternative investment products, including certain non-traded REIT and BDC investments.

Robert Ginsberg has been affiliated with Oakdale, Minnesota-headquartered Woodbury Financial Services, Inc. since September 2016. He conducts business under his own shingle through Ginsberg Financial Advising of Wallingford, Connecticut. Of the three pending securities arbitration proceedings naming or otherwise involving Mr. Ginsberg, these disputes all involve allegations of unsuitability in connection with various non-traded investment products. Unfortunately, in some instances, investors in various non-traded REITs and BDCs may not be fully informed of the many risks associated with these investment products at the time of purchase, including lack of liquidity and high up-front fees and commissions. All too often, uninformed investors come to find out too late that they cannot easily exit their investment position, as options to do so with the vast majority of non-traded financial products are limited and often restrictive.

Financial advisors like Mr. Ginsberg have a legal duty and regulatory obligation to only recommend suitable investments to their customers that are appropriate for their clients’ needs and in accordance with their stated investment objectives and risk tolerance. If this duty is breached, then investors who have suffered losses may be entitled to recover these losses. Reasonable basis suitability, as set forth under FINRA Rule 2111, requires that a recommended investment (or investment strategy) be suitable or appropriate for at least some investors. Further, in order to adhere to the reasonable basis standard, a broker-dealer—and by extension the financial advisor—must conduct adequate due diligence on an investment so that the broker may evaluate the risks and rewards of the investment.

Furthermore, financial advisors must also ensure that they adhere to their customer-specific suitability obligations, which requires the financial advisor to have a reasonable basis to believe that a specific investment recommendation (including an investment strategy) is suitable for a particular customer based upon his or her profile. Pursuant to FINRA Rule 2111 certain criteria must be evaluated to conduct a comprehensive suitability analysis, including the investor’s age, financial situation and needs, tax status, investment objectives and risk tolerance, as well as time horizon and liquidity needs. In instances where a broker makes an unsuitable recommendation, then the customer may bring a claim against the broker, as well as the broker-dealer for its failure to supervise any negligence or other misconduct.

If you have invested with Mr. Ginsberg, or another financial advisor, and believe that you have suffered losses due to unsuitable investment recommendations, you may be able to recover your losses in securities arbitration before FINRA. The attorneys at Giarrusso Law Group LLC have considerable experience working with investors on claims related to unsuitable investments and investment programs. Investors who wish to discuss a possible claim are invited to contact us by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and no-obligation consultation