If you suffered investment losses with Buckman, Buckman & Reid (BBR) please call 303-300-5022 about potential loss recovery. BBR has been censured and officer, Chip Buckman, suspended for a culture of insufficient supervision leading brokers to make excessive trades and recommend overly aggressive securities
From January 2013 through April 2017, BBR failed to maintain a supervisory system and enforce written supervisory procedures. In addition, BBR and Chip Buckman—who was the Firm’s designated supervisory principal responsible for conducting suitability reviews failed to reasonably supervise two former registered representatives, who the regulatory documents identify only by initials GK and RI, recommended excessive and unsuitable trades in dozens of investor accounts.
Regulatory rules require securities firms and their brokers to have a reasonable basis to believe that a recommended securities transaction or investment strategy is “suitable” for the customer, based on the information obtained through the reasonable diligence of the firm or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance. Failure to do so is a “suitability” violation.
Unsuitable investment recommendations and excessive trading are forms of fraud. Both enable a broker to make commissions that significantly above those that would be earned if the broker handled the account in a manner consistent with regulatory obligations. Both also create unnecessary risks in the portfolios of their investors.
BBR was required to maintain procedures to make sure that investment recommendations were suitable BBR’s system failed to monitor its brokers in such a fashion. No one at BBR reviewed the monthly reports and alerts that could have helped the Firm detect excessive trading and unsuitable concentration levels in customer accounts.
The supervisory failures allowed the fraud to occur. At least one of the brokers involved had a history of misdeeds when he was first hired by BBR including many complaints for unsuitable securities sales. Despite this history of fraud, BBR failed to supervise this broker. Not surprisingly, the broker continued to commit fraud in the accounts of his investors.
We assist investors who lose value in their portfolio when brokers commit misdeeds and brokerages fail to supervise. Please call for a free and confidential consultation.