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Investor Claims Alina Leganoa Recommended an Unsuitable Hedge Fund

Feb 8, 2022 Unsuitable Investments

Alina Leganoa (CRD #:5035983), a broker and investment advisor registered with Morgan Stanley, is involved in an unsuitability dispute, according to her BrokerCheck record, accessed on January 17, 2021. 

According to the allegations filed on October 20, 2021, Alina Leganoa recommended  a hedge fund that was not appropriate for her client’s investment profile. The client further alleges that Alina Leganoa did not accurately explain the risks associated with the Hedge fund. The client sought $299,702.84 but the case was denied. Investors should know that they can still recover their losses following a denial. Denials simply mean the brokerage firm denies that their broker engaged in misconduct—they do not indicate a third-party review of the dispute.  

What is Unsuitability? 

"Unsuitability" is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer's goals and investment profile. 

Under FINRA Rule 2111, a customer's investment profile includes the following:  

  • Investor age 
  • Financial situation and needs 
  • Tax status 
  • Investment objectives 
  • Investment experience 
  • Risk tolerance 

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration. 

What is Misrepresentation? 

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest.  

Did you know that any of the following can be considered misrepresentation or omission? 

  • Inadequate due diligence concerning security offerings 
  • Failure to disclose all material risks 
  • Failure to disclose all transaction costs 
  • Unrealistic presumptions for investment projections 
  • Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Losses that can be attributed to a stockbroker's material misrepresentations of facts may result in a viable securities arbitration claim for damages. 

Background Information 

Alina Leganoa has passed the following exams: 

  • Series 66 - Uniform Combined State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

Alina Leganoa is a registered broker in five states. She is also a registered investment advisor in Florida. 

Alina Leganoa has also worked with the following firms: 

  • Wells Fargo Clearing Services (CRD#:19616) 
  • UBS Financial Services (CRD#:8174) 
  • UBS International (CRD#:107726) 

Kurta Law Can Help 

If you have worked with Alina Leganoa and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.