Securities Arbitration Lawyer Blog
FINRA has suspended former RBC Capital Markets broker Jeffrey Fladell from associating with any FINRA member for three months over unsuitable recommendations he made to a retired senior over 100 years old, which resulted in her extreme overconcentration in high-yield municipal bonds. In addition to his suspension, Fladell was fined $5,000.
If you have lost money with Jeffrey Fladell, or RBC Capital Markets, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Jeffrey Fladell (CRD#: 209278)
Fladell’s FINRA CRD shows eleven customer disputes, including one award. Many of the customer complaints allege that Fladell made unsuitable investment recommendations in municipal bonds, including Puerto Rico municipal bonds.
Our firm has vast experience representing and helping investors recover in disputes involving Puerto Rico municipal bonds. You can read more about our experience here.
Fladell has 45 years of experience in the securities industry and has been registered with the following firms:
- RBC Capital Markets, LLC, Florham Park, NJ (October 9, 2009 – December 31, 2017);
- B. Hanauer & Co., Parsippany, NJ (March 15, 1995 – October 9, 2009);
- B. Hanauer & Co., Parsippany, NJ (November 7, 1988 – February 16, 1993);
- Halpert and Company, Inc., (April 30, 1979 – November 5, 1988);
- Swanton Securities, Inc., (January 27, 1976 – April 26, 1979);
- Travelers Equities Sales, Inc., (October 23, 1972 – October 4, 1984);
- Hermes Securities, Inc., (July 15, 1971 – July 15, 1975); and
- Bernard Schnitzer, (October 30, 1970 – March 1, 1974).
FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)
Jeffrey Fladell and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on March 25, 2021, over the following findings:
- From February 2014 through August 2015, Fladell made unsuitable recommendations to a retired senior over 100 years old, which resulted in her extreme overconcentration in high-yield municipal bonds in violation of MSRB Rule G-19.
- The senior customer was the trustee for two conservative trust accounts at RBC. One trust account was for herself, and the other was for the benefit of her sister-in-law, who also was a senior. Both accounts had the most conservative investment objective with a low risk tolerance. Beginning in 2014, despite the volatility of the municipal bond market at the time, Fladell repeatedly recommended to the senior customer that she invest in high-yield municipal bonds, a recommendation that was contrary to the investment profile of the trust accounts. By June 2015, 86% of the senior customer’s holdings and 100% of the senior customer’s sister-in-law’s holdings, in conservative trust accounts, consisted of risky high-yield municipal bonds.
- MSRB Rule G-19 requires that a broker, dealer or municipal securities dealer “have a reasonable basis to believe that a recommended transaction or investment strategy involving a municipal security or municipal securities is suitable for the customer, based on the information obtained through the reasonable diligence of the broker, dealer or municipal securities dealer to ascertain the customer’s investment profile.”
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Jeffrey Fladell, or RBC Capital Markets, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.