Investor Claims Hagop Nalbandian Recommended Unsuitable Investments
Hagop Nalbandian (CRD #: 2921246), a broker registered with Western International Securities, is facing allegations of unsuitable investment recommendations. This information is drawn from Hagop Nalbandian’s BrokerCheck record, accessed on April 5, 2023. You can find more information below about Hagop Nalbandian’s alleged conduct as a broker.
Unsuitable Investment Allegations
On December 23, 2022, an investor filed a dispute alleging that Hagop Nalbandian recommended unsuitable investments and engaged in negligence. This dispute is currently pending.
On December 29, 2021, an investor named Hagop Nalbandian and other brokers in allegations including recommendations of unsuitable investments, failure to supervise, breach of contract, and violations of Section 10(b) of the Securities Exchange Act of 1934, the California Securities Act, and FINRA Rules 2090 and 2010.
These allegations concerned non-traded real estate investment trusts (REITs) and other trusts. The dispute was settled for $108,500. You can read the full arbitration award here.
What is an Unsuitable Investment?
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:
- Age
- Financial goals
- Risk tolerance
- Time horizon (i.e., how long the investor plans to hold the investment)
- Investing experience
- Tax status
Investors who rely on brokers for investment recommendations can potentially recover their losses by pursuing FINRA arbitration.
FINRA Rule 3110
FINRA Rule 3110 requires that firms establish systems of supervision to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.
FINRA Rule 2090
FINRA Rule 2090 requires firms to obtain and keep certain essential facts about their clients and the individuals authorized to act on their behalf.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Securities Exchange Act of 1934
Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities.
What are blue sky laws?
Blue sky laws like the California Securities Act are state-level regulations that offer investors an additional layer of protection against securities fraud. They typically also describe what types of investments must register with the state securities board.
What are real estate investment trusts?
A real estate investment trust (REIT) allows investors to pool their funds in a portfolio of income-generating real estate without taking on any responsibility for managing the properties. However, REITs tend to be illiquid, which makes them unsuitable for some investors.
Background Information
Hagop Nalbandian has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Hagop Nalbandian is currently registered as a broker in California, Colorado, Nevada, South Carolina, and Texas.
He has worked for the following firms:
- Financial West Group (CRD #:16668)
- Linsco/Private Ledger Corp. (CRD #:6413)
- Essex National Securities, Inc. (CRD #:25454)
- Citicorp Investment Services (CRD #:23988)
- Cal Fed Investments (CRD #:19631)
- Biltmore Securities, Inc (CRD #:25023)
Kurta Law Can Help
If you worked with Hagop Nalbandian and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want 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.
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