Public records published by the Financial Industry Regulatory Authority (FINRA) on August 30, 2016 indicate that Texas-based IMS Securities broker/adviser Joshua Patterson 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. Patterson (CRD# 3077302).
Joshua Patterson has spent eighteen years in the securities industry and has been registered with IMS Securities in Houston, Texas since 2002. Previous registrations include Morgan Stanley DW in Purchase, New York (2001-2002) and UBS Painewebber in Weehawken, New Jersey (1998-2001). He is a registered broker and investment adviser with thirteen US states and territories: Arkansas, California, Colorado, Florida, Hawaii, Illinois, Louisiana, Michigan, New Mexico, North Carolina, Oklahoma, Texas, and Virginia.
According to his BrokerCheck report, Joshua Patterson has received one pending customer complaint and one closed customer complaint.
In June 2016 a customer alleged Joshua Patterson, while employed at IMS Securities, acted negligently, over-concentrated the account, breached his fiduciary duty, and misrepresented material facts related to the investment. The customer is seeking $3,000,000 in damages in the pending complaint.
In 2013 a customer alleged Joshua Patterson, while employed at IMS Securities, performed inadequate due diligence and investment monitoring. The customer sought $490,000 in damages in the complaint, which was closed.
According to FINRA rules and federal securities law, brokers like Joshua Patterson are beholden to a fiduciary duty that requires them to act only in the best interests of their clients. This means, for instance, that they can only recommend suitable investments that take into account the client’s investment goals, experience, and risk tolerance. Firms are not permitted to misrepresent or omit material facts related to an investment, as this might cause a customer to invest unsuitably. Brokers and firms who violate applicable rules and regulations may be subject to disciplinary action from FINRA, the Securities and Exchange Commission, or state authorities.
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 Joshua Patterson, you may be entitled to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis, which means we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.