Publicly available records published by the Financial Industry Regulatory Authority (FINRA) on April 27, 2016 indicate that California-based Capital Financial Services broker/adviser Gary Warner is the subject of a customer complaint. The securities and investment fraud law firm Fitapelli Kurta is investigating allegations of misconduct against Mr. Warner (CRD# 2784883).
Gary Warner has spent 19 years in the securities industry and has been registered with Capital Financial Services in Fresno, California since 2003. Previous registrations include ARM Securities Corporation in Minot, North Dakota (2000-2003) and Brecek & Young Advisors in Folsom, California (1996-2000). He is a registered broker and investment adviser in seven US states and territories: California, Idaho, North Carolina, Oregon, Texas, Utah, and Washington.
According to his BrokerCheck report, Gary Warner is the subject of one customer complaint.
In 2013, a customer alleged that Gary Warner, while employed at Capital Financial Services, breached his fiduciary duty, recommended unsuitable investments, failed to diversify investments, failed to disclose information, and failed to conduct appropriate due diligence. The complaint settled in August 2015 for $215,000, to which Mr. Warner individually contributed $12,500.
According to FINRA rules as well as federal securities law, financial advisers like Gary Warner are beholden to a fiduciary duty that requires them to act only in their clients’ best interests. This means, for instance, that they can only recommend suitable investments that take into account such factors as the client’s investment experience, goals, income, net worth, and risk tolerance. Brokers and advisers are forbidden from misrepresenting or omitting material facts related to an investment, as this might cause a customer to invest unsuitably. Brokerage firms like Capital Financial Services have a duty to supervise their representatives and ensure compliance with these regulations. Brokers and firms who fail to recommend suitable investments may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.
Concentration (or “over-concentration”) refers to a broker’s failure to diversify a customer’s portfolio among a variety of assets. Sometimes a broker believes one asset will outperform others, and focuses the investment in that asset or class. In other cases, a broker might invest primarily in a series of related investments; for instance, municipal bonds in the same region. Since similar classes often perform similarly, if one performs poorly, the others might as well. Brokers who fail to diversify their customers’ investments may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.
If you have lost money investing with Gary Warner, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 without delay. You may be entitled to recoup your losses. We accept all cases on contingency: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.