Church Loses $135,000 Due to Alleged Bad Advice From Broker Betsy Marcom

Broker fined $15,000 and suspended for four months as a result of FINRA investigation

After having damages granted against her in the amount of $135,000 by a customer questioning the suitability of her investments in December 2012, Texas financial advisor Betsy B. Marcom (previously known as Betsy Bratton Perryman) is once again under scrutiny by FINRA.

In a disciplinary action dated November 19, 2015, the Next Financial Group, Inc. financial advisor, Betsy Marcom, accepted and consented (without admitting or denying the findings) to the entry of FINRA findings that stated:

“…Marcom made unsuitable investments recommendations to her client, HTCC, a non-profit parish church. Specifically, Marcom, who was also a member of HTCC’s Finance Council, recommended that HTCC invest almost its entire portfolio in non-investment grade corporate bonds, which resulted in HTCC having an unsuitable concentration in such bonds. These recommendations were inconsistent with HTCC’s investment objectives and risk tolerance.”

According to the complaint, when the parish priest retired in June 2009, Marcom recommended that the Finance Council (of which he was a member) and the parish business manager approve investments into non-investment grade bonds to generate larger returns in the account.

By April 2011, the HTCC account assets were 99% concentrated in such non-investment grade bonds. In September 2011, after an additional deposit into its account, the HTCC account consisted of approximately $706,000 in non-investment grade bonds.

It is alleged that the non-investment grade bonds Marcom recommended were not suitable for HTCC’s risk tolerance, investment objectives, or financial situation.

Ultimately, according to the disciplinary action, HTCC sustained approximately $135,000 in realized losses as a result of its unsuitable holdings in non-investment grade bonds.

In addition, Marcom allegedly advised HTCC to sell bonds within three months of maturity, which resulted in the church receiving approximately $3661 less than it would have if it held the bonds to maturity.

As a result, Marcom was fined $15,000 by FINRA and suspended for four months from association with any FINRA member firm in all capacities.

While such unethical behavior on the part of a financial adviser takes place, investors are not without rights. If you or someone you know is the victim of unethical behavior or securities fraud, it is important to know that through securities arbitration, you may potentially recover your financial losses. What you need is an experienced securities arbitration attorney with a proven track record in client recovery.

Silver Law Group’s team of securities arbitration attorneys stands ready to help you understand your rights and represent your interests. Schedule a complimentary case review today.