Cold Calling Stockbrokers aren’t Only on Long Island

Dialing for dollars has always been a popular method for young stockbrokers to solicit new customers.  Although cold calling has been dramatized in movies such as Glen Gary Glenn Ross and the Wolf of Wall Street, it still apparently also serves major global financial institutions as a successful marketing tool.  Merrill Lynch has agreed to pay $400,000 for  telemarketing compliance violations to the N.H. Bureau of Securities Regulation which alleges Merrill Lynch failed to ‘fully understand’ how to comply with telemarketing rules and cold calls were made to potential clients on the do-not-call lists.  Cold call violations have recently re-appeared on regulators radar screen after Edward Jones & Co agreed to pay $750,000 to settle similar charges.  As part of the settlement, Merrill Lynch agreed to enhance its telemarketing policies and procedures.  However, Merrill Lynch apparently recognizes this time honored method of chasing potential clients and will continue to use it as part of its sales techniques.

Regulators including the SEC and FINRA have issued investor bulletins warning investors to be dubious of cold calling financial advisors.  Investors should investigate any advisor prior to sending money to someone they met over the phone.  Amongst other due diligence techniques, investors can use FINRA’s BrokerCheck system to get basic background information about a financial advisor including employment history and potentially other customer complaints.

If you invested money based upon a telephone call, you may be entitled to recover some of you investment losses. Our law firm has represented many investors who ultimately regretted taking a cold call because the brokerage firm churned their account or otherwise invested in unsuitable products. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.