Brian Edward Smith – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Brian Edward Smith.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Brian Edward Smith. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Brian Smith
Brian Edward Smith is an Investment Adviser. Brian Edward Smith’s Central Registration Depository (CRD) number is 2287309 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2287309.
Click here to download a Detailed Audit Report for Brian Edward Smith.
Brian Edward Smith has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Brian Edward Smith’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 3/16/2009
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: MISREPRESENTATION OR MISLEADING INFORMATION, UNSUITABLE RECOMMENDATIONS. ACTIVITY DATES 3/15/2007 TO 1/21/2009
- Damage Amount Requested: $330,000.00
- Settlement Amount: $150,000.00
- Arbitration Docket Number: 09-06278
- Broker Comment: CLIENT IS ALLEGING MISREPRESENTATION OR MISLEADING INFORMATION AND UNSUITABLE RECOMMENDATIONS WHICH WE CAN CLEARLY DEFEND. CLIENT IS UNHAPPY ABOUT THE MARKET LOSSES IN HIS ACCOUNT AND STATES WE MISREPRESENTED THE VARIABLE ANNUITIES AND LIFE INSURANCE HE PURCHASED. HE IS A KNOWLEDGEABLE INVESTOR WHO HAS PURCHASED THESE SAME PRODUCTS IN THE PAST. WE HAVE MET WITH [CUSTOMER ON SEVERAL OCCASIONS TO RE-EXPLAIN THE PRODUCTS WHICH HE PURCHASED PREVIOUSLY AND HE LEFT THOSE MEETINGS STATING HE CLEARLY UNDERSTANDS HIS INVESTMENTS AND IS HAPPY WITH HIS ACCOUNT AND RIVERSTONE WEALTH MANAGEMENT. THEN AFTER MEETING WITH HIM, HE WOULD COME BACK TO US AGAIN STATING HE DOESN’T UNDERSTAND HIS INVESTMENTS AND WE WOULD GO OVER THE INVESTMENTS AGAIN WITH HIM. EACH TIME HE LEFT STATING HE WAS HAPPY WITH HIS ACCOUNT AND CLEARLY UNDERSTOOD HIS INVESTMENTS. WE FEEL THAT THE PRODUCTS IN WHICH HE INVESTED ARE SUITABLE FOR HIM AND THAT WE CLEARLY EXPLAINED THE PRODUCTS IN DETAIL WHEN HE PURCHASED THEM, AND HAVE CONTINUED TO RE-EXPLAIN THEM TO HIM. OUR INSURANCE COMPANY DECIDED TO PAY THE [CUSTOMERS A SETTLEMENT AMOUNT RATHER THAN CONTINUE TO PAY FURTHER DEFENSE COSTS.
DISCLOSURE 2 –
- Event Date: 2/14/2008
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Withdrawn
- Disclosure Detail :: Allegations: CLIENT IS ALLEGING THEFT, WHICH WE CLEARLY CAN DEFEND. THE COMPLAINT IS FROM A 3RD PARTY, [THIRD PARTY, ALLEGING THAT WE SHOULD NOT HAVE ACCEPTED THE INSTRUCTIONS FROM [FAMILY MEMBER(WHO IS THE MOTHER AND POA OF ACCOUNT) TO TRANSFER THE ASSETS TO THE TRUST ACCOUNT. [CUSTOMER ACKNOWLEDGES AND READILY ADMITS THAT SHE ASSIGNED HER MOTHER, [FAMILY MEMBER AS POWER OF ATTORNEY FOR HER AFFAIRS. RIVERSTONE DID NOTHING WRONG IN ACCEPTING INSTRUCTIONS FROM A VALID POWER OF ATTORNEY TO TRANSFER ASSETS ON THE ACCOUNT. THIS IS A FAMILY MATTER AND NOT SALES PRACTICE RELATED.
- Damage Amount Requested: $18,300.00
- Arbitration Docket Number:
- Broker Comment: I HAVE ONLY BEEN NAMED IN THIS ALLEGATION DUE TO MY ROLE AT THE FIRM AS CHIEF COMPLIANCE OFFICER AND MY NAME ON OUR FIRM’S WEBSITE AS CHIEF COMPLIANCE OFFICER. I WAS NOT THE SUPERVISOR AT THE TIME, NOR INVOLVED IN THE ACCOUNT MANAGEMENT, OR TRANSFER OF THE ACCOUNT OR FUNDS. THIS CHARGE OF THEFT IS WITHOUT MERIT OR FACTUAL BASIS. THE AUDIT TRAIL CLEARLY SHOWS FUNDS WERE TRANSFERRED FROM [CUSTOMER’S ACCOUNT TO HER MOTHER’S ACCOUNT, [FAMILY MEMBER THE TRANSFER WAS AUTHORIZED BY A POWER OF ATTORNEY [CUSTOMER SIGNED WHICH WAS WITNESSED, IN WRITING, BY TWO OF HER FRIENDS AND A NOTARY PUBLIC. THERE WAS NO SOLICITATION OF THIS ACTIVITY AND NO FEES OR CHARGES, NOT ONE PENNY, WERE ASSESSED TO [CUSTOMER FOR THE SERVICES RENDERED TO HELP HER. THIS IS A FAMILY MATTER. [CUSTOMER HAS WITHDRAWN HER COMPLAINT AGAINST RIVERSTONE AND ITS MANAGERS AND EMPLOYEES.
DISCLOSURE 3 –
- Event Date: 12/12/2005
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: C06050014
- DocketNumberAAO: 06050014
- Initiated By: NASD
- Allegations: NASD CONDUCT RULE 2110- RESPONDENT FAILED TO ENSURE THAT THE FIRM INCLUDED A SETTLEMENT AMOUNT WITH ANOTHER COPANY AS A LIABILITY OF THE FIRM. THE RESPONDENT, ACTING ON BEHALF OF THE FIRM, FAILED TO INCLUDE THE FULL AMOUNT OF UNSECURED DEBIT BALANCE IN THE FIRM’S FINANCIAL BOOKS AND RECORDS. THE RESPONDENT, ACTING ON BEHALF OF THE FIRM, ENGAGED IN A SECURITIES BUSINESS AND BECAUSE THE FIRM DID NOT INCLUDE AS LIABILITIES THE UNSECURED DEBT AND THE SETTLEMENT AMOUNT, THE FIRM’S NET CAPITAL DEFICIENCY RANGED FROM $220,000 TO $557,000.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER FIRM IN ANY PRINCIPAL CAPACITY FOR 60 DAYS AND FINED $25,000, JOINTLY AND SEVERALLY. HIS SUSPENSION SHALL BEGIN AT THE OPENING OF BUSINESS ON JANUARY 17, 2006 AND CONCLUDE AT THE CLOSE OF BUSINESS ON MARCH 17, 2006. FINES PAID.
DISCLOSURE 4 –
- Event Date: 8/9/2001
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Dismissed
- Disclosure Detail :: Allegations: BROKER [OTHER FIRM EMPLOYEE TRADED INAPPROPRIATE SECURITIES ON MARGIN AND CHURNED HER ACCOUNT.
- Arbitration Docket Number:
- Broker Comment: THIS COMPLAINT WENT FROM A LAWSUIT TO A NASD ARBITRATION. A SETTLEMENT AGREEMENT WAS REACHED BETWEEN PARTIES.
DISCLOSURE 5 –
- Event Date: 6/28/2001
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: BROKER [OTHER FIRM EMPLOYEE ALLEDGELY TRADED INAPPROPRIATE SECURITIES AND CHURNED THEIR ACCOUNT
- Damage Amount Requested: $4,500,000.00
- Arbitration Docket Number:
- Broker Comment: CUSTOMER COMPLAINT WENT FROM LAWSUIT TO ARBITRATION. SETTLEMENT AGREEMENT REACHED. NOTICE OF NONSUIT WITH PREJUDICE FILED ON LAWSUIT AND DISMISSAL WITH PREJUDICE FILED ON ARBITRATION.
DISCLOSURE 6 –
- Event Date: 3/5/1997
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Award / Judgment
- Disclosure Detail :: Allegations: OMMISSION OF FACTS, UNAUTHORIZED TRADING, BREACH OF FIDUCIARY DUTY, CHURNING INAPPROPRIATE INVESTMENTS, FAILURE TO DISCLOSE FACTS, EXCESSIVE TRANSACTIONS/ COMMISSIONS, LACK OF BROKER SUPERVISION, 929,317
- Damage Amount Requested: $29,317.00
- Damages Granted: $15,000.00
- Arbitration Docket Number:
- Broker Comment: I SETTLED WITH CLIENT TO BE DROPPED FROM THE ARBITRATION. $15,000. THE OTHER DEFENDANTS WENT THROUGH THE ARBITRATION AND LOST ON ALL COUNTS. THEIR DAMAGES WERE AROUND $25,000.00 I WORKED AS AN ASSISTANT FOR 2 SENIOR BROKERS AT DICKINSON & CO. IN THAT ROLE I WAS ASSOCIATED WITH [CUSTOMER’S ACCOUNT. CLEARLY BASED ON THEIR DECISION, THE ARBITRATION PANEL FELT THEY WERE RESPONSIBLE JOINTLY, AND SEVERALLY FOR THE WAY [CUSTOMER’S ACCOUNT WAS HANDLED. CONSIDERING THE FACT THAT I WOULD HAVE HAD TO DEFEND MYSELF SIDE BY SIDE WITH THEM, I OPTED INSTEAD TO LIMIT MY LEGAL EXPENSES AND SETTLE OUT OF THE CASE.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- CARY STREET PARTNERS (CRD#: 128089) :: 11/1/2013 – 4/1/2019 :: AUSTIN, TX
- RIVERSTONE WEALTH MANAGEMENT, INC. (CRD#: 40418) :: 12/18/2000 – 2/10/2014 :: AUSTIN, TX
- THE AVANTUS GROUP, INC. (CRD#: 39347) :: 12/8/1995 – 12/18/2000 :: AUSTIN, TX
- FIRST MONTAUK SECURITIES CORP. (CRD#: 13755) :: 5/8/1995 – 12/31/1995 :: RED BANK, NJ
- MORGAN KEEGAN & COMPANY, INC. (CRD#: 4161) :: 5/23/1994 – 5/2/1995 :: MEMPHIS, TN
- DICKINSON & CO. (CRD#: 689) :: 10/19/1992 – 5/25/1994 :: DES MOINES, IA
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Brian Edward Smith, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Brian Smith
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Brian Edward Smith – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2287309) for the broker – Brian Edward Smith
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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