If your were an investor of Charles J. Euler, Jr. with Janney Montgomery Scott of Radnor, PA please call 303-300-5022. Charles Euler has a long history of being a broker but he also has a long history of lawsuits concerning alleged fraud in the form of selling unsuitable investments.
On March 27, 2020, Mr. Euler surrendered his license rather than defend a regulatory investigation. The investigation was initiated by the Financial Industry Regulatory Authority (“FINRA”). This is the self-regulatory organization that is empowered by the Securities and Exchange Commission to oversee securities brokers in the United States. The agreement was that Mr. Euler consents to “A bar from associating with any FINRA member firm in any capacity.”
The investigation followed the filing of Janney that Mr. Euler was permitted to resign in April 2018.
The history of suits against Mr. Euler for similar actions is long. In all, there are seven suits. All the suits alleged that Mr. Euler allege that he made unsuitable recommendations.
Regulations, state and federal laws all prohibit the sale of unsuitable securities. Unsuitable securities or investment plans are recommendations by a broker that are higher risk or inconsistent with an investors investment objectives. This can be the result of high risk investments being placed in the portfolio of someone looking for moderate risk. It can also occur when a broker recommends too high a concentration of a particular stock, industry, or too high a concentration in stocks compared to bonds, cash and CDs.
There are various reasons for the sale of unsuitable securities. Many times high risk investments pay a higher commission than suitable investments. Unsuitable recommendations can also be the result of negligence on the part of the broker.
FINRA requires brokerages to give a broker heightened supervision if the brokerage employs a broker with a customer complaint history. The general number of suits or complaints triggering such supervision is four. That means heightened supervision was required and the employer of Euler, Janney, is largely to blame for the actions of Euler.
Even before Euler reached the threshold of four complaints, Janney had a duty to supervise. Each trade by a broker is to be reviewed by the employing brokerage for suitability.
Investors should speak to a lawyer familiar with FINRA regulations to determine if they are entitled to compensation.