Richard Harvey Peress – 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 Richard Harvey Peress.
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 Richard Harvey Peress. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Richard Peress
Richard Harvey Peress is an Investment Adviser. Richard Harvey Peress’s Central Registration Depository (CRD) number is 360122 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/360122.
Click here to download a Detailed Audit Report for Richard Harvey Peress.
Richard Harvey Peress 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 Richard Harvey Peress’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 12/20/2013
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2011030674101
- DocketNumberAAO: 2011030674101
- Initiated By: FINRA
- Allegations: FINRA RULES 2010, 2110: PERESS DEPOSITED QUARTERLY DIVIDEND INCOME CHECKS TOTALING $11,460.10 INTO HIS PERSONAL BROKERAGE ACCOUNT THAT WERE INTENDED FOR A FORMER CLIENT, AND CONTINUED TO HOLD THOSE FUNDS UNTIL HE REPAID THE FORMER CUSTOMER. PERESS WAS AWARE THAT THE CUSTOMER HAD AN INTEREST IN A COMPANY THAT WOULD PAY THE CUSTOMER DIVIDENDS ON A PERIODIC BASIS. AT THE TIME CHECKS FROM THE COMPANY WERE FIRST DEPOSITED INTO PERESS’ ACCOUNT, HE HAD NOT EXPECTED ANY CHECKS FROM THE COMPANY AND WAS NOT ENTITLED TO RECEIVE ANY. IN ADDITION, PERESS HAD NEVER OWNED ANY SECURITIES OR HAD ANY FINANCIAL INTEREST IN THE COMPANY. PERESS TOLD HIS FIRM THAT THE CHECKS MAY HAVE BEEN OLD COMMISSION PAYMENTS WHEN IT QUESTIONED HIM ABOUT THE CHECKS. NOTWITHSTANDING THE REFERENCE TO THE CUSTOMER ON THE MATERIALS ACCOMPANYING THE DIVIDEND CHECKS, PERESS TOOK NO STEPS HIMSELF TO DETERMINE WHETHER THE FUNDS BELONGED TO HIS CUSTOMER AND DID NOT ATTEMPT TO SPEAK WITH THE CUSTOMER OR DETERMINE WHETHER THE CUSTOMER WAS RECEIVING DIVIDEND CHECKS FROM THE COMPANY. AFTER BEING SHOWN A DIVIDEND CHECK WITH THE CUSTOMER’S NAME, PERESS CONTINUED TO TELL FIRM MANAGEMENT THAT HE WAS ENTITLED TO THE DIVIDEND CHECKS. PERESS MADE CONTRADICTORY EXPLANATIONS FOR THE CHECKS TO THE CUSTOMER, STATING THAT THEY MAY HAVE BEEN PAYMENTS FROM A JOINT INVESTMENT WITH THE CUSTOMER OR COMMISSION PAYMENTS FROM AN INVESTMENT MADE ON THE CUSTOMER’S BEHALF. PERESS DID NOT HAVE A REASONABLE BASIS TO BELIEVE HE WAS ENTITLED TO THE MONEY, JUSTIFIED HIS RECEIPT OF THE MONEY BY GIVING CONFLICTING EXPLANATIONS TO HIS FIRM ABOUT WHY HE WAS RECEIVING THE CHECKS AND IGNORED A NUMBER OF RED FLAGS DEMONSTRATING THAT THE MONEY BELONGED TO HIS FORMER CLIENT. PERESS CONTINUED TO HOLD THE FUNDS EVEN AFTER IT WAS CLEAR TO HIM THAT HE WAS NOT ENTITLED TO THE MONEY. RESPONDENT FINALLY PROVIDED RESTITUTION TO HIS FORMER CLIENT AFTER FINRA MADE A WELLS NOTIFICATION. PERESS FAILED TO ADEQUATELY INVESTIGATE THE PAYMENTS LABELED AS DIVIDEND CHECKS BEING MADE DIRECTLY INTO HIS PERSONAL SECURITIES BROKERAGE ACCOUNT, FAILED TO ADEQUATELY RESPOND TO RED FLAGS THAT THE MONEY WAS NOT HIS, AND FAILED TO MAKE PROMPT REPAYMENT AFTER HE KNEW THAT THE MONEY WAS NOT HIS. HE THUS HAD USE OF HIS CUSTOMER’S FUNDS FOR OVER 11 YEARS.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $5,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ALL CAPACITIES
- Duration: 90 DAYS
- Start Date: 7/21/2014
- End Date: 10/18/2014
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, PERESS CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT DIVIDEND CHECKS TOTALING $11,460.10, WHICH BELONGED TO A FORMER CLIENT, WERE DEPOSITED INTO BROKERAGE ACCOUNTS HE OWNED. THE FINDINGS STATED PERESS KNEW OR SHOULD HAVE KNOWN THAT HE WAS NOT ENTITLED TO THE FUNDS FROM THE DIVIDEND CHECKS BECAUSE HE DID NOT OWN STOCK IN THE ENTITY DISTRIBUTING THEM. THE FINDINGS ALSO STATED THAT PERESS KNEW OR SHOULD HAVE KNOWN THAT HIS FORMER CLIENT WAS THE RIGHTFUL OWNER OF THE DIVIDEND CHECKS, IN THAT, AMONG OTHER THINGS, HE SOLD THE ENTITIES SECURITIES TO THE CLIENT, THE CHECKS WERE IDENTIFIED AS DIVIDEND CHECKS, AND THE DOCUMENTATION ACCOMPANYING THE CHECKS REFERENCED THE CLIENT. THE FINDINGS ALSO INCLUDED THAT PERESS FURTHER FAILED TO ACT REASONABLY AFTER HE RECEIVED NOTICE THAT HE HAD LIKELY RECEIVED HIS CLIENT’S MONEY. PERESS KNEW THAT HIS FORMER FIRM HAD CONCLUDED THAT HE WAS NOT ENTITLED TO THE DIVIDEND CHECKS, BUT HE UNREASONABLY WAITED UNTIL FINRA INSISTED UPON REPAYMENT BEFORE MAKING REPAYMENT. FINE PAID IN FULL ON JULY 9, 2014.
DISCLOSURE 2 –
- Event Date: 12/15/2009
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: CLAIMANT ALLEGES, INTER ALIA, THAT THE FINANCIAL ADVISOR MADE UNSUITABLE INVESTMENTS IN THE CLAIMANT’S ACCOUNTS. TIME PERIOD UNSPECIFIED.
- Damage Amount Requested: $500,000.00
- Settlement Amount: $70,000.00
- Arbitration Docket Number:
DISCLOSURE 3 –
- Event Date: 8/5/1975
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: SECURITIES AND EXCHANGE COMMISSION
- Resolution: Consent
- Sanction Details :: Sanctions: Suspension
- Broker Comment: IN 1976, THE SEC ACCEPTED THE OFFER OF SETTLEMENT SUBMITTED BY PERESS. HE WAS SUSPENDED FOR FIVE DAYS AND, FOR A PERIOD OF ONE YEAR FROM THE EXPIRATION OF THE SUSPENSION, AND IN THE ABSENCE OF INTERNAL COMPLIANCE PROCEDURES OF ANY BROKER/DEALER BY WHOM PERESS IS EMPLOYED, PERESS SHALL BE REQUIRED TO OBTAIN WRITTEN AUTHORIZATION FROM THE COMPLIANCE DIRECTOR OR AN OFFICER OF HIS EMPLOYER FOR ANY RECOMMENDATIONS TO MORE THAN THREE CUSTOMERS FOR THE PURCHASE OF ANY SECURITY NOT ADMITTED TO TRADING ON A NATIONAL SECURITIES EXCHANGE.
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.
- STIFEL, NICOLAUS & COMPANY, INCORPORATED (CRD#: 793) :: 11/16/2011 – 12/31/2015 :: SCOTTSDALE, AZ
- MORGAN STANLEY SMITH BARNEY (CRD#: 149777) :: 6/1/2009 – 12/14/2011 :: SCOTTSDALE, AZ
- CITIGROUP GLOBAL MARKETS INC. (CRD#: 7059) :: 7/31/1993 – 6/1/2009 :: SCOTTSDALE, AZ
- LEHMAN BROTHERS INC. (CRD#: 7506) :: 6/25/1979 – 7/31/1993 :: NEW YORK, NY
- LOEB PARTNERS (CRD#: 7534) :: 1/18/1978 – 6/25/1979
- LOEB RHOADES & CO. INC. (CRD#: 7502) :: 1/4/1977 – 1/18/1978
- LOEB, RHOADES & CO. INC. (CRD#: 525) :: 10/6/1975 – 1/4/1977
- EDWARDS & HANLY (CRD#: 6554) :: 9/19/1974 – 11/15/1975
- HAYDEN STONE INC. (CRD#: 6567) :: 7/5/1974 – 8/31/1974
- SHEARSON, HAMMILL & CO., INCORPORATED (CRD#: 766) :: 6/27/1966 – 8/29/1974
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 Richard Harvey Peress, 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 Richard Peress
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Richard Harvey Peress – 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 (360122) for the broker – Richard Harvey Peress
- 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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