Argyros has been in the industry since 1985 and was previously registered at CIBC World Markets Corp. (CRD#: 630), Kemper Securities Group, Inc. (CRD#: 19616), Blunt Ellis & Loewi Incorporated (CRD#: 7580), and others.
Customer Disputes Against Demos Argyros
Demos Argyros has five disclosures on his record, all customer disputes. The most recent was in February, 2019, in which the claimant alleges negligence, breach of fiduciary duty, and breach of contract relating to unsuitable equities and warrants. $100,000 in damages are requested. The dispute is pending.
In April, 2017, a customer requested $900,000 in damages in a dispute that alleged breach of fiduciary duty, churning, and “suitability conversion by charging excessive fees and missing funds.” That dispute was settled for $275,000 and Argyros states in a comment that he voluntarily agreed to reimburse the firm.
In March, 2003, a customer requested $100,000 in damages, alleging that Argyros didn’t diversify their portfolio and chose inappropriate investments. The dispute was denied.
In July, 1999 a customer alleged that Argyros didn’t follow his transaction instructions to short one stock and purchase Amazon, and that Argyros purchased Monsanto without his authorization. The dispute requested $188,016 in damages and was settled for $56,500.
In November, 1988, a customer alleged that Argyros misrepresented their investments in options and that the risk factors associated with the strategy were not adequately explained. The plaintiffs requested $50,000, and the case was settled for $1,436.
Allegation Of Churning
One of the allegations against Argyros is churning, which is simply when a stockbroker trades securities in a customer’s account excessively for the purpose of generating commissions. Churning is a violation of securities laws and FINRA rules.
Churning is a common type of controversy in arbitration claims brought by customers. FINRA Suitability Rule 2111 requires stockbrokers to have a reasonable basis for recommending transactions in their customer’s account. A customer may have a good chance of success through arbitration if the stockbroker controlled the activity in the account and the trading in the account was excessive based on the customer’s objectives and tolerance for risk.
Statistics about the turnover ratio (annual purchases divided by average annual balance) are often used to determine if the activity was excessive. The cost-equity ratio (all costs divided by average balance) is referred to as the “breakeven” rate of return, which an arbitration panel will consider to determine how reasonably a customer can expect their investment returns to cover it.
Breach Of Fiduciary Duty Allegations
Two of the five customer disputes against Argyros include allegations of breach of fiduciary duty. Like churning, breach of fiduciary duty is one of the most common causes of action raised by customers in arbitration claims.
Different securities professionals are held to different standards. A registered investment advisor is a fiduciary, who is obligated to act in the best interest of their clients and owes their clients a duty of loyalty and good faith when making investment recommendations.
A stockbroker is only required to make suitable recommendations, which is a lower standard than a fiduciary.
If a financial advisor fails to disclose all information, such as a conflict of interest, that can be considered a conflict of interest and a breach of fiduciary duty.
Do You Have Investment Loses With Demos Argyros Or Oppenheimer & Co.?
If you or someone you know lost money investing with Demos Argyros or Oppenheimer & Co., contact the Silver Law Group toll free at (800)-975-4345 or e-mail firstname.lastname@example.org for a confidential consultation. Our attorneys have extensive experience representing investors with losses related to churning, unsuitable investments, and breach of fiduciary duty and represent investors in Florida and nationwide.