In the world of finance, the role of a stockbroker is crucial. They act as intermediaries between investors and the stock market, providing advice and executing trades on behalf of their clients. However, like any profession, the conduct of some brokers can lead to complaints and disputes. This article focuses on complaints related to a specific broker, Brian Napier(CRD# 4555202).
The Prevalence of Broker Complaints
Before delving into the specifics of Brian Napier, it’s important to understand the broader context. According to a New York Times article, 7.28 percent of brokers employed from 2005 to 2015 had at least one disclosure in their industry records for a settled consumer complaint or worse. This statistic underscores the reality that complaints against brokers are not uncommon.
The Complaint Process
When a customer has a complaint against their broker, the broker and their firm may decide that the complaint is unfounded and choose to deny it. In such cases, the disposition on BrokerCheck, a service provided by the Financial Industry Regulatory Authority (FINRA), will reflect “denied.” If the complaint is denied, the customer may then decide to seek compensation for damages by filing a claim in arbitration.
FINRA is the organization that handles complaints against brokerage firms and their employees. Through its Complaint Program, FINRA investigates complaints and can take disciplinary actions against brokers and their firms. Sanctions may include fines, suspensions, barring from the securities industry, or other appropriate sanctions.
Brian Napier: A Case Study
The BrokerCheck report for Brian Wayne Napier includes the following disclosure events for the sale of GWG Holdings products:
- Customer Dispute – Pending
- Reporting Source: Broker
- Employing firm when activities occurred which led to the complaint: AUSDAL FINANCIAL PARTNERS, INC.
- Allegations: BREACH OF FIDUCIARY DUTY; FAILURE TO SUPERVISE
- Product Type: Other: GWG L BONDS
- Alleged Damages: $435,000.00
- Date Complaint Received: 09/02/2022
- Is this an oral complaint? No
- Is this a written complaint? No
- Is this an arbitration/CFTC reparation or civil litigation? Yes
- Arbitration/Reparation forum or court name and location: FINRA
- Docket/Case #: 22-01956
- The filing date of arbitration/CFTC reparation or civil litigation: 08/30/2022
This information was found on page 10 of the document.
In addition, the document mentions that all individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings. Disclosure events in BrokerCheck reports come from different sources, including brokers, brokerage firms, and regulators. A disclosure event may have a status of pending, on appeal, or final. A final event generally has a disposition of adjudicated, settled, or otherwise resolved. This information was found on page 9 of the document.
Legal Assistance for Broker Complaints
Haselkorn and Thibaut, which specialize in investment fraud, can help customers navigate the complex process of filing a complaint and seeking compensation. We offer free consultations and operate on a “No Recovery, No Fee” basis, meaning they only charge fees if they successfully recover losses for their clients.
Customers who feel their broker has wronged them have several avenues for seeking justice, including filing a complaint with their brokerage firm, escalating the issue to FINRA, and seeking legal assistance.