Newton, MA Financial Advisor Subject of Six Customer Disputes
As disclosed through FINRA BrokerCheck, financial advisor Ronald D. Birnbaum (CRD# 2382580) has been named or otherwise involved in six customer disputes over the course of his twenty-six year career in financial services. Mr. Birnbaum is dually registered as a stockbroker and an investment adviser, and in this regard, is affiliated with Advisory Group Equity Services Ltd. as a broker (2001-present) and Trust Advisory Group Ltd. as an investment adviser (2002-present). Mr. Birnbaum first entered the securities industry in 1993 and conducts his business from offices in Newton, Massachusetts.
Of the customer disputes concerning Mr. Birnbaum, two matters concluded with settlements, one in January 2013 and the other in March 2016. These matters settled in the aggregate amount of $95,000. As of this writing, four disputes remain pending in securities arbitration before FINRA. Notably, three of the pending disputes concern allegations of “failure to provide suitable due diligence, overconcentration, [and] suitability.”
Under applicable securities laws and FINRA Rules, brokerage firms like Advisory Group Equity Services Ltd. have a legal obligation to perform adequate due diligence on any investment product (or investment strategy) recommended to customers by its brokers. By extension, brokers like Mr. Birnbaum have an affirmative duty to, among other things, understand the risks associated with a particular investment product or investment strategy.
Moreover, pursuant to FINRA Rule 2111 (Suitability), a broker must have a reasonable basis to believe, based upon the employer’s due diligence, that the investment at hand is suitable for at least some investors. In conducting such a reasonable basis suitability analysis, FINRA Rule 2111 specifically mandates that “a broker must perform reasonable diligence to understand the nature of the recommended security or investment strategy involving a security or securities, as well as the potential risks and rewards, and determine whether the recommendation is suitable for at least some investors based on that understanding.”
Broker-dealers including Advisory Group Equity Services Ltd. are legally obligated to ensure that their registered representatives are adequately supervised. Accordingly, brokerage firms must take reasonable steps to ensure that their brokers follow applicable securities rules and regulations, as well as adhere to the firm’s internal policies. In those instances when a brokerage firm fails to adequately supervise its brokers, it may be held liable for losses suffered by investors.
Investors who have suffered losses with Ronald D. Birnbaum, or another financial advisor, may contact our office by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and confidential consultation to learn more about their legal rights. The attorneys at Giarrusso Law Group LLC have extensive experience with handling all manner of claims on behalf of investors who have been victimized by securities fraud or related misconduct.