Broker Thomas Fross Subject Of Client Dispute Over $119K

Thomas Fross (Thomas Michael Fross CRD:# 4509874) is a registered broker and investment advisor currently employed with LPL Financial of The Villages, FL. He was previously employed with Securities America, Inc. (CRD#:10205), also of The Villages. He has been in the industry since 2002.

Fross is currently the subject of a pending dispute over the sale of a client’s securities, filed on 6/10/2020. In it, the client claims that Fross failed to follow instructions in regards to “unsuitable portfolio changes” from 3/26/20 TO 8/21/20. The client requests damages in the amount of $119,716.05. Fross responds that he denies all allegations, that he discussed everything with the customer, and the changes were made in order to move into more conservative investments.

A previous dispute filed in 2016 alleged “Unsuitability; misrepresentations and omissions; violation of NASD/FINRA conduct rules; breach of contract; negligence; breach of fiduciary duty; and vicarious liability.” The client requested damages of $24,000, and the claim was settled for $19,634.34. Fross was only a subject of arbitration in the matter.

Unsuitable Investment Recommendations

Brokers like Thomas Fross, and broker-dealers like LPL Financial, are regulated by federal securities laws and FINRA rules and standards. Brokers are required to make suitable investment recommendations pursuant to FINRA Rule 2111 “Suitability” and FINRA Rule 2090 “Know Your Customer.”

Suitability requires that a broker have “a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable” based upon the investment profile of the customer. The investment profile is determined by factors such as the customer’s age, investment objectives, other investments, financial situation, tax status, investment experience, investment time horizon, liquidity needs, and risk tolerance.

The suitability of an investment or investment strategy is also determined by an investor’s ability to understand the risks associated with it.

FINRA rules also state that stockbrokers have the obligation to ensure that a recommended series of transactions in a customer’s account appear suitable when viewed in isolation and also when viewed in aggregate. Overall the transactions in the account must not be excessive or unsuitable when viewed in aggregate given the customer’s investment profile (also referred to as Quantitative Suitability).

Unsuitability of investment recommendations is a common cause for investors in FINRA arbitration claims.

Did You Invest With Thomas Fross?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.