IMPORTANT NOTICE TO CUSTOMERS OF STEPHEN SMITH AND CETERA WHO SUFFERED SIGNIFICANT INVESTMENT LOSSES

If You Suffered Losses With Financial Advisor Stephen Smith Contact the Law Firm of KlaymanToskes

NEW YORK, NY, USA, August 16, 2024 /EINPresswire.com/ -- National investment loss and securities lawyers KlaymanToskes is investigating Cetera Investment Services and financial advisor Stephen Smith, after their recommendations of unsuitable annuities caused an investor to suffer over $100,000 in damages. The law firm urges customers who suffered investment losses with Stephen Smith and Cetera to contact the firm immediately at 888-997-9956.

KlaymanToskes reports the firm has filed a FINRA arbitration claim (no. 24-01561) against Cetera Investment Services on the behalf of an investor who is seeking to recover hundreds of thousands of dollars in damages, in connection with being recommended to invest in an unsuitable fixed annuity and an equity indexed annuity by her financial advisor, Stephen Smith (CRD# 2632131).

According to the claim filed by KlaymanToskes, the customer sought a short-term, safe, principal protected investment, and entrusted Cetera and its advisor with making suitable investment recommendations that were in her best interest. The recommendations to invest in an unsuitable fixed annuity and an equity indexed annuity were unsuitable, as they locked up the customer’s investment and she was unable to access the money without incurring sales charges and tax penalties.

KlaymanToskes’ investigation found that Smith failed to explain to the customer that the annuities were not liquid and that she would have to wait 5 years to sell either annuity. If the customer sold either annuity before the expiration of the lock-up, she would incur a contingent deferred sales charge and tax penalty. Accordingly, it made no economic sense for Smith and Cetera to recommend annuities to the customer, when purchasing the investments created a liquidity issue for her.

Financial advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers. Investment firms may be held liable for any losses incurred by their customers in the event of unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or an overconcentration of the customer’s portfolio in one particular investment, class, or market sector. Further, financial professionals and their firms cannot disregard a customer’s risk-tolerance when making investment recommendations.

Current and former customers of Stephen Smith and/or any other financial advisor who suffered investment losses at Cetera Investment Services are encouraged to contact attorney Steven D. Toskes, Esq. at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

Steven D. Toskes, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
investigations@klaymantoskes.com