Edward Francis Scro, a former Registered Representative of the now un-registered financial advisory company NelsonReid, Inc., was permanently barred by the Financial Industry Regulatory Authority (FINRA) for making unsuitable recommendations to his elderly customers. According to FINRA’s findings, Mr. Scro, of Naples, Florida, advised his elderly customers, who needed a stable monthly income, to invest in risky, illiquid investments, sold primarily by Private Placement Memoranda (PPMs).
FINRA’s findings alleged that Edward Scro was recommending a strategy to protect his elderly customers’ principal while, at the same time, they would be earning a very high interest rate with little to no risk. Mr. Scro also recommended an overconcentration in real estate-related investments. FINRA also found that Mr. Scro’s business card falsely stated that he had a Masters of Business Administration (MBA) degree (which he did not) and that he failed to provide FINRA with presentation materials he used in seminars, personal bank statements and would not provide requested on-the-record testimony. Consequently, Edward Scro was barred by FINRA from association with FINRA members in any capacity.
Brokerage firms and their financial professionals have the responsibility, under FINRA Rule 2111, the “Suitability Rule,” to make suitable recommendations to investors. FINRA recognizes that its stockbroker members must use extra care in dealing with the elderly. Certain products or strategies come with high risk to seniors and high commissions to unscrupulous financial advisors.
Have you suffered losses in a private placement investment? Have you suffered losses in your Nelsonreid, Inc. or any other brokerage account due to unsuitable recommendations or the overconcentration of your investments by your broker? Was Edward Scro your financial advisor? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Nelsonreid, Inc. stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.