Newbridge Securities Corp Financial Advisor, Kerri Jamison, faces a series of complaints from customers who accused her of making unsuitable investment recommendations. Jamison has been in the securities industry since 2001, having worked at Dewaay Financial Network before joining Newbridge Securities.
Jamison is among several brokers at Newbridge Securities Corp that have been flagged for stockbroker fraud. According to data from BrokerCheck, Jamison faced fraud accusations from four customers, with three filed in 2020 and still pending, while one has been settled.
In the latest complaint, which was filed in April, Jamison is accused of breach of contract, negligence, and fiduciary duty. When settled, she could pay $99k in damages. Another customer filed a complaint accusing Jamison of unsuitable investment recommendations, breach of fiduciary duty, and material misrepresentation, where the client is seeking $200k in damages. A third client is seeking $99k in damages accusing Jamison of negligence, breach of contract, and breach of fiduciary duty. In 2016, a client accused Jamison of recommending unsuitable investments, breach of contract, breach of fiduciary duty, violation of California Securities Act, negligence, and engaging in common law fraud. This matter has since been settled.
Financial advisors are required to recommend suitable investment
By law, financial advisors are required to recommend suitable investment products considering all the client’s needs and investment objectives. In addition, the brokerage firm is required to supervise its advisor’s sales practices, as well as other engagements with the client. A customer is entitled to recovery of his/her lost portfolio in case these duties are breached.
There are different levels of suitability based on the client’s investment objectives. Reasonable suitability requires that the financial advisor recommends investment products or strategies that are appropriate for some investors. To attain this level of suitability, an advisor is required to conduct sufficient research and due diligence to determine the projected returns and level of risk involved in an investment product or strategy.
To achieve quantitative suitability, an advisor takes customer’s account to monitor all transactions, maximize returns, and reduce risk. The advisor carries out trading on behalf of the client, considering the client’s financial profile and investment objectives. Several factors are considered by the broker to achieve quantitative suitability. These are the cost-equity ratio, turnover rate, and the use of in-and-out trading. Finally, customer-specific suitability requires an advisor to recommend investment products and strategies specific to the customer’s needs and investment objectives. In this case, a financial advisor evaluates a number of factors to determine customer-specific suitability. These include;
- Customer’s age
- Financial situation and needs
- Time horizon
- Other investments
- Tax status
- Risk tolerance
- Liquidity needs
- Investment objectives
In addition to Newbridge Securities Corporation, Jamison has worked for four other brokerage firms including Dewaay Financial Network LLC, Associated Securities Corp, Linsco/Private Ledger Corp, and Washington Square Securities, Inc. She has passed the Series 7 – General Securities Representative Examination, the SIE – Securities Industry Essentials Examination, and the Series 66 – Uniform Combined State Law Examination. Jamison is registered to practice in 25 states in the US.
Many investors have lost their investment in the hand of Newbridge Securities brokers
In addition to Jamison, there are several other brokers attached to the firm who are also battling customer complaints to recommend unsuitable investments. Current and former Newbridge brokers that are facing complaints according to BrokerCheck records are;
- Michael Greenfield
- Dana Davis
- Dennis Hayes
- David Fagenson
- Peter Goffin
David Fagenson and Dennis Hayes have since been barred from practicing. According to the Financial Industry Regulatory Authority (FINRA) regulations, a brokerage firm is liable for loss incurred by a client due to mismanagement by a broker attached to the firm.