Daniel Allen Abbott – 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 Daniel Allen Abbott.
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 Daniel Allen Abbott. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Daniel Abbott
Daniel Allen Abbott is an Investment Adviser. Daniel Allen Abbott’s Central Registration Depository (CRD) number is 3003452 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/3003452.
Click here to download a Detailed Audit Report for Daniel Allen Abbott.
Daniel Allen Abbott 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 Daniel Allen Abbott’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/21/2009
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2007010239501
- DocketNumberAAO: 2007010239501
- Initiated By: FINRA
- Allegations: NASD RULES 2110, 2210(B)(1), 2210(C)(2), 2210(D)(1)(A), 2210(D)(1)(B), 2210(D)(1)(D), 2210(D)(2)(B), 2210(D)(2)(C)(I) – DANIEL ABBOTT PRESENTED SEMINARS TO PROMOTE THE SALE OF REVERSE MORTGAGES AND SOLICIT VARIOUS TYPES OF INVESTMENTS FROM SENIOR CITIZENS CONTRARY TO HIS MEMBER FIRM’S PROHIBITION OF ENGAGING IN ANY REVERSE MORTGAGE BUSINESS, INCLUDING THE PROMOTION AND SALE OF REVERSE MORTGAGES. IN CONNECTION WITH THE SEMINARS, ABBOTT SENT INVITATIONS THAT USED EXAGGERATED AND UNWARRANTED CLAIMS AND PROJECTION SLIDES AND HANDOUTS PROJECTED UNFOUNDED CLAIMS OF FUTURE PERFORMANCE. ABBOTT’S PUBLIC COMMUNICATIONS CONTAINED UNBALANCED DISCUSSIONS OF REVERSE MORTGAGES AND MADE CLAIMS REGARDING HIS EXPERTISE AND STATUS IN THE FINANCIAL INDUSTRY THAT WERE MISLEADING, FALSE, UNWARRANTED OR LACKED A SOUND BASIS. ABBOTT DISTRIBUTED COMMUNICATIONS THAT PROVIDED INCOMPLETE AND UNBALANCED DISCUSSIONS OF INVESTMENT PRODUCTS AND OMITTED MATERIAL INFORMATION. ABBOTT USED COMMUNICATIONS IN THE SEMINARS WITHOUT PRIOR WRITTEN AND DATED APPROVAL BY A REGISTERED FIRM PRINCIPAL. ABBOTT FAILED TO FILE SLIDES USED IN HIS PRESENTATION WITH FINRA’S ADVERTISING REGULATION DEPARTMENT. ABBOTT’S SEMINAR INVITATION FAILED TO DISCLOSE THE NAME OF THE BROKER-DEALER.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $20,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ANY CAPACITY
- Duration: 60 DAYS
- Start Date: 8/3/2009
- End Date: 10/1/2009
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, ABBOTT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $20,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 60 DAYS. THE FINE IS DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE SUSPENSION OR PRIOR TO ANY REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IS IN EFFECT FROM AUGUST 3, 2009 THROUGH OCTOBER 1, 2009.
- Broker Comment: AT THE REQUEST OF WELLS FARGO REVERSE MORTGAGE CONSULTANTS I DID APPROXIMATELY 6 SEMINARS WITH THEIR FIRM WITHOUT RECEIVING PERMISSION FROM MY BROKER DEALER. THEY HAD BEEN DOING THIS WITH ANOTHER LICENSED ADVISOR WHO THEY STATED WAS RUDE TO THE ELDERLY PARTICIPANTS AND THAT WELLS FARGO HAD A NATIONAL CONTRACT WITH HIS FIRM FOR THE SAME. I DID NOT OFFER OR SELL ONCE CENT OF ANY INVESTMENT PRODUCT TO THE ATTENDEES. THE SEMINAR WAS DEVELOPED AND APPROVED BY THE SUITABILITY DEPARTMENT OF WELLS FARGO. MY ERRANT THOUGHT WAS, IF I DID NOT OFFER OR SELL A SECURITY PRODUCT
- THERE WOULD BE NO ISSUE. ANY ILLUSTRATION PRESENTED USING ADVISOR APPROVED SOFTWARE, WAS ONLY THE ASSUMED AMOUNT OWED BY A POTENTIAL CLIENT OF WELLS FARGO ON THE MORTGAGE AT A FUTURE DATE, VERSUS WHAT THE PROPERTY MIGHT BE WORTH AT THAT FUTURE DATE BASED ON THE CLIENT’S ASSUMPTIONS. I ALSO SPOKE AT THE SEMINAR WITH WHAT A POTENTIAL CLIENT MIGHT EARN ON ANY ADDITIONAL FUNDS TAKEN OUT OF THE REVERSE MORTGAGE PROCEEDS; I SHOWED THE CD RATES FROM BANKRATE.COM AND THE MONEY MARKET RATE CURRENTLY BEING OFFERED BY ING DIRECT, AND A FIXED ANNUITY PRODUCT, WITH PROPER SUITABILITY DISCLOSURE. AFTER SPENDING APPROXIMATELY $20,000.00 ON ATTORNEY BILLS I AGREED TO A SETTLEMENT WITH FINRA. I HAD PREVIOUSLY CANCELLED MY APPOINTMENT WITH JEFFERSON PILOT SECURITIES AND HAD NO INTEREST IN CONTINUING TO OFFER SECURITY PRODUCTS DUE TO THE MARKET CONDITIONS AT THAT TIME. MY ATTORNEY AND I WERE ADVISED THAT THERE WOULD BE A ONETIME POSTING OF THE VIOLATION IN FINRA’S MONTHLY NEWSLETTER AND WAS SENT A COPY OF A SAMPLE OF THAT POSTING. I DID NOT HAVE KNOWLEDGE THAT THE POSTING WOULD BE PERMANENTLY IN MY RECORD. IF I SIGNED ANYTHING TO THAT AGREEMENT IT WAS UNKNOWN TO ME. NO CLIENT THAT ATTENDED THOSE SEMINARS WERE HARMED IN ANY MANNER FINANCIALLY BECAUSE OF MY ATTENDANCE, THE INVITATIONS WERE CREATED BY WELLS FARGO AND HAD BEEN APPROVED BY THEIR SUITABILITY DEPARTMENT. FINRA HOWEVER OBJECT TO MUCH OF THEIR SCRIPT ON THE INVITATION. I HAVE MAINTAINED THE RECORDS THAT PERTAIN TO THE ABOVE MATTER. THE COMPLAINT WAS GENERATED I BELIEVE BY AN AGENT OF JEFFERSON PILOT SECURITIES WHO WAS IN THE SAME OFFICE BUILDING AS I AN INDIVIDUAL CAME TO MY OFFICE AFTER A SEMINAR AND REQUESTED THAT I PUT HIS FUND FROM A POTENTIAL REVERSE MORTGAGE INTO A VARIABLE ANNUITY. HE HAD NO MORTGAGE ON HIS HOME AND HAD ALREADY PURCHASED A TWO VARIABLE ANNUITIES FROM A DIFFERENT JEFFERSON PILOT AGENT WITH ALL HIS IRA MONEY AND 95% OF HIS NON-IRA FUNDS. HE WAS 74 YEARS OF AGE AND I TOLD HIM I COULD NOT DO AN INVESTMENT FROM REVERSE MORTGAGE FUNDS AND THAT I WOULD HAVE NOT PUT ALMOST ALL HIS LIFETIME SAVING IN THE TWO HE HAD ALREADY BOUGHT. I AGAIN DID NOT KNOW JEFFERSON PILOT HAD POSTED TO ITS REPRESENTATIVES THAT WE WERE NOT TO DISCUSS REVERSE MORTGAGES IN ANY WAY. I WAS ABLE TO IDENTIFY THE INDIVIDUAL AS THE ILLUSTRATION I DID ON HIS AMOUNTS POTENTIALLY OWED AT HIS DEATH WAS TIME DATE STAMPED AND PRESENTED TO ME BY FINRA.
DISCLOSURE 2 –
- Event Date: 4/16/1996
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: COMMONWEALTH OF VA STATE CORP. COMM. DEPT OF INS.
- Allegations: 1.) FAILURE TO HOLD CLIENTS FUNDS FUDICIARY RESPONSIBILITIES 2.) FAILURE TO DISCLOSE ON ADVERTISING PIECE THAT ANNUITY ACCOUNT WAS A RIDER ON AN INSURANCE POLICY.
- Resolution: Settled
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $10,000.00 Sanctions: Cease and Desist/Injunction
- Sanctions: NONE
- Sanction Details: 10,000 PAID 06/16/1996
- Broker Comment: EMPLOYEES OF AUTO INSURANCE AGENCY HAD STOLEN DOWN PAYMENT MONEY FOR POLICIES FROM MY TRUST ACCOUNT CAUSING AGENCY TO BOUNCE CHECK TO CARRIER. I IMMEDIATELY MADE GOOD ON APPROX $100,000 OF STOLEN FUNDS. IN REGARDS TO 14D1A THERE WAS A SIGN IN OFFICE SAID EARN 11% TAX DEFERRED INTEREST ASK FOR DETAILS STATE OF VA SAID SIGN SHOULD HAVE SAID THE ACCOUNT WAS A RIDER ON A LIFE INSURANCE PLAN ALTHOUGH CLIENT HAD TO SIGN AND INITIAL 8 PLACES IF APPLYING FOR AN ACCOUNT. ENTERED INTO A SETTLEMENT AGREEMENT WITHOUT ADMITTING OR DENYING FAULT.
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.
- JEFFERSON PILOT SECURITIES CORPORATION (CRD#: 3870) :: 9/18/2001 – 8/15/2007 :: VIRGINIA BEACH, VA
- U.S.-WORLDWIDE FINANCIAL SERVICES, INC. (CRD#: 19612) :: 3/19/1998 – 10/29/1999 :: WACO, TX
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 Daniel Allen Abbott, 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 Daniel Abbott
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Daniel Allen Abbott – 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 (3003452) for the broker – Daniel Allen Abbott
- 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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