Broker Jeremy Seth Rosen Accused of Unsuitable Investments for Customers While at Berthel, Fisher & Company Financial Services
Former customers of Jeremy Seth Rosen have accused the previously registered broker and investment adviser of making unsuitable investments, according to Financial Industry Regulatory Authority’s (FINRA) BrokerCheck. Rosen’s record contains disclosures of three pending and seven final customer disputes related to his time as a broker with Berthel, Fisher & Company (BFC) Planning, Inc.
A History of Alleged Unsuitable Investments
According to BrokerCheck, all seven of the settled disputes involving Rosen allege that the investments he made on clients’ behalf between 2016 and 2019 were unsuitable. Disputes of unsuitability represent some of the most common FINRA arbitration claims. This type of complaint typically arises from a broker putting their clients into products that are inappropriate for the clients’ investment goals, financial situation, or risk tolerance.
A broker is bound by FINRA Rule 2111 to educate themselves on their investors’ profile—which includes clients’ liquidity needs, financial needs, and age—and to consider these elements when recommending and making investments for each client.
If a broker fails to consider these parameters in favor of transactions that pay the highest commissions, clients are entitled to recover any losses through arbitration.
A Firm That Reportedly Failed to Supervise
Rosen’s customers further accused BFC of failing to supervise Rosen’s activities when he was under the firm’s employ, BrokerCheck reports. This failure would represent yet another FINRA violation. FINRA Rule 3110 requires that member firms “establish and maintain a system to supervise the activities of each associated person”—to include the brokers and investment advisors that represent the member firms.
Settled and Pending Disputes
The complainants in the settled disputes involving Rosen alleged damages ranging from $140,000 to $4,500,000. Although the firm admitted no wrongdoing, it agreed to settle an arbitration with each claimant. Settlement amounts ranged from $44,400 to over $955,000, BrokerCheck reports.
Three customer disputes remain pending as of this writing, as per Rosen’s FINRA record. The complaints center on the same issue of unsuitability, and they also hold BFC Planning responsible for failing to supervise their employee’s actions. Some complaints further accuse Rosen of misrepresenting investments. Alleged damages in these pending disputes range from over $1,500,00 to $1,800,000.
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At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
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Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
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