Jeffrey Gitterman is a financial advisor with Vanderbilt Securities. In July 2023, Gitterman’s employers were serve with their eighth demand for arbitration in the last four years. Like the others, the demand alleged inappropriate actions by Gitterman. These many suits range in alleged damages from several thousands and of dollars to several million.
The number of suits concerning Gitterman is important, not only because the suits show a propensity to mistreat investors, but also because they show a need for his employers to provide heightened supervision to Gitterman. Generally, four customer complaints triggers the need to give an advisor heightened supervision.
The complaints concerning Gitterman allege the recommendation of alternative investments that were unsuitable for the investor. A financial advisor, also referred to as a securities broker, has a duty to only recommend investments that are consistent, or suitable, with the objectives and risk tolerances of the investor. A speculative investment for a moderate investor would be unsuitable for that investor.
Alternative investments are investments that are more unique than common stock or bonds. The uniqueness can make them hard to understand and created extremely high risk. Some financial advisors recommend such investments despite an investor’s inability to understand because more aggressive investments often pay a higher commission. Alternative investments commonly pay a commission over 7% while shares of publicly traded stock pay a commission of less than 1%.
In addition to serving as a securities broker, Gitterman has handled the funds of individuals as a registered investment adviser. This means that his responsibilities to investors is greater than that of a securities broker.
In addition to working for Vanderbilt, Gitterman worked as a broker and adviser for Triad Advisors.
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