As a financial analyst and legal expert with over a decade of experience, I’ve seen my fair share of investor complaints and regulatory actions. The recent complaint against Jersey City financial advisor Mark Gassoso is a serious one, alleging unsuitable investment recommendations and mismanagement of customer assets while he was a representative of National Securities Corporation. The pending complaint seeks damages of $500,000, a significant sum that underscores the gravity of the situation.
For investors, a complaint of this magnitude raises red flags about the advisor’s judgment and professionalism. It’s crucial to thoroughly research any financial professional before entrusting them with your hard-earned money. As the famous investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” Due diligence is key to mitigating that risk.
The Advisor’s Background
Mark Gassoso has been in the securities industry for 29 years and is currently registered with B. Riley Wealth Management. His past registrations include National Securities Corporation, Barron Chase Securities, and Preferred Securities Group. While longevity in the industry can be a positive sign, it’s important to look at an advisor’s entire record, including any past complaints or regulatory actions.
In Mr. Gassoso’s case, the recent complaint is the only disclosure on his BrokerCheck report. However, even a single complaint can be cause for concern, especially when it involves allegations of unsuitable recommendations and mismanagement of assets.
Understanding FINRA Rules
The complaint against Mr. Gassoso likely implicates FINRA Rule 2111, known as the “suitability rule.” This rule requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. Factors that brokers must consider include the customer’s age, financial situation, risk tolerance, and investment objectives.
Violations of the suitability rule can lead to significant consequences for brokers and their firms, including fines, suspensions, and even permanent bars from the securities industry. For investors, unsuitable recommendations can result in substantial financial losses and derail long-term investment goals.
Lessons for Investors
The complaint against Mark Gassoso serves as a reminder of the importance of working with trustworthy, competent financial professionals. Before hiring an advisor, investors should:
- Check the advisor’s background and disciplinary history using FINRA’s BrokerCheck
- Ask about the advisor’s investment philosophy, strategy, and experience
- Understand all fees and costs associated with the advisor’s services
- Ensure that the advisor puts client interests first and upholds fiduciary duties
It’s also crucial for investors to stay engaged and informed. Regular reviews of account statements and open communication with advisors can help identify potential issues before they escalate.
Fact: According to a 2021 study by the North American Securities Administrators Association, unsuitability was the most common allegation in investor complaints, accounting for over 30% of all complaints received.
While the vast majority of financial advisors are honest and competent, the complaint against Mark Gassoso underscores the need for constant vigilance. By thoroughly vetting advisors, understanding regulatory protections, and staying actively involved in their investments, investors can better safeguard their financial futures.
