Publicly available records published by the Financial Industry Regulatory Authority (FINRA) on October 13, 2016 indicate that Florida-based Wells Fargo Advisors broker/adviser David Deacon is the subject of a pending customer complaint. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Deacon (CRD# 867550).
David Deacon has spent 37 years in the securities industry and has been registered with Wells Fargo Advisors in Boca Raton, Florida since 2008. Previous registrations include AG Edwards & Sons in Boynton Beach, Florida (1993-2008) and Merrill Lynch in New York, New York (1979-1993). He is a registered broker and investment adviser with twenty-two US states and territories: Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Vermont, Virginia, and Washington.
According to his BrokerCheck report, David Deacon has received one customer complaint and one pending customer complaint.
In July 2016 a customer alleged David Deacon, while employed at Wells Fargo Advisors and Morgan Stanley, over-concentrated her portfolio in unsuitable investments, including unit investment trust product/s. The customer is seeking damages estimated to exceed $300,000 in the pending complaint.
In 1993 a customer alleged David Deacon recommended the unsuitable purchase of limited partnerships in her account. The complaint settled for $50,000.
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.
A unit investment trust is an investment entity that issues securities representing undivided interests in a fixed portfolio of securities. UITs are typically gathered by a sponsor into a portfolio, placed into a trust, and sold in a public offering. They are redeemable securities issued for a specified term, and investors are entitled to receive a proportionate share of the UIT’s net assets on redemption or at termination. A unit investment trust is typically offered in a one-time public offering of a set number of units. Despite that, UIT sponsors often establish secondary markets, allowing owners of individual UIT units to sell those units back to their sponsors, thus extending the opportunity for new investors to buy UITs. The expenses associated with unit investment trusts involve sales charges; creation and development fees; and operating expenses, typically charged against the UIT’s portfolio of assets. Sponsors generally offer several possible discounts, including breakpoints, which let investors reduce fees by increasing the size of their investments, as well as discounts on rollovers and exchanges. Brokers and investment advisers who engage in misconduct related to unit investment trusts may also be subject to disciplinary action.
If you or someone you know has complaints regarding David Deacon, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on contingency: we only receive payment if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.