Articles Tagged with overconcentration

Maria Hendershott (CRD#: 818681), a registered representative with Raymond James & Associates in Houston, Texas, is currently engaged in a customer dispute in which a client alleges “unsuitable investments, misrepresentations and omissions, [and] overconcentration,” among other allegations, according to her BrokerCheck report accessed on October 3, 2019. The client, who filed the complaint on August 5, 2019, is seeking $175,000 in damages. This is not the only disclosure on Maria Hendershott’s BrokerCheck record. This is an update to our previous article on Maria Hendershott.

Maria Hendershott
To review, one of Maria Hendershott’s clients filed a complaint on November 27, 2018, alleging that she engaged in “breach of contract and warranties, promissory estoppel, [and violated] provisions of the Texas state securities statues,” among other allegations. The client originally requested $500,000 in damages, but the matter was settled for $55,000.

On October 3, 2017, a client alleged “gross mismanagement of accounts, investor abuse, churning, breach of fiduciary duty, negligence, [and] violation of industry rules.” The client requested $100,000 in damages, but the matter was settled for $75,000.

Rob Burns (CRD#: 4066393), a registered representative with Cetera Advisor Networks in Greenwood Village, Colorado, is currently involved in a pending customer dispute in which a client alleges that Rob Burns overconcentrated their portfolio and recommended unsuitable investments in alternative products, according to Rob Burns’ BrokerCheck record accessed on October 2, 2019. They also alleged that Rob Burns’ firm failed to do proper due diligence regarding the alternative investments. The client, who filed the customer dispute on August 9, 2019, is seeking $500,000 in damages.

Rob BurnsAlso known as private placements, alternative investments are only suitable for a small percentage of investors. “Accredited investors” have a high degree of financial literacy and at least an annual income of $200,000 or more. A problem has arisen, however, because these income and net worth guidelines have not changed since 1983. Thus, many individuals and families qualify as accredited investors based on their income but may find themselves in over their heads when it comes to these investments.

On August 3, 2018, a client alleged that Rob Burns recommended unsuitable investments, acted negligently, and breached his fiduciary duty.