Our firm is investigating Berthel, Fisher & Company Financial Services, Inc. broker and BFC Planning, Inc. investment adviser representative Jon Harris Mesmer (CRD# 2179965), who works from Aberdeen, South Dakota, for potential investment-related misconduct.
Financial Advisor’s Career History
BrokerCheck reflects that Jon Harris Mesmer’s securities industry career began in October 1991 with AAL Capital Management Corporation, followed by Washington Square Securities, Inc. from January 1997 to September 1998, PrimeVest Financial Services, Inc. from September 1998 to June 2000, Wells Fargo Brokerage Services, L.L.C. and Wells Fargo Investments, LLC during 2000 to 2002, AXA Advisors, LLC in 2002, Berthel Fisher & Company Financial Services, Inc. from December 2002 forward, and BFC Planning, Inc. as an investment adviser representative since December 2013.
Jon Harris Mesmer Fraud Allegations and Investor Complaints Explained
FINRA’s BrokerCheck report shows one final customer dispute disclosure for Mesmer. According to the disclosure, the claim alleged that the customer was sold unsuitable investments involving direct investment-DPP and LP interests and a real estate security. The arbitration was filed with FINRA arbitration on December 29, 2009, the complaint was received on April 14, 2010, alleged damages were $296,000, and the matter was marked settled on May 18, 2011 for $130,000, with an individual contribution of $13,750 attributed to Mesmer. The report states the firm agreed to settle the arbitration to compromise disputed claims.
FINRA Disclosure Summary
- Customer dispute / FINRA arbitration — Allegation: unsuitable investments involving direct investment-DPP & LP interests and real estate securities; Filing date: December 29, 2009; Complaint received: April 14, 2010; Alleged damages: $296,000; Status/Disposition: Settled on May 18, 2011; Settlement amount: $130,000; Individual contribution: $13,750.
To obtain a copy of Jon Harris Mesmer’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
Potential FINRA rules implicated by the allegations
FINRA Rule 2111 is FINRA’s current suitability rule. It requires a broker to use reasonable diligence to understand the risks and rewards of a recommendation, to determine whether it is suitable for at least some investors, and to have a reasonable basis to believe the recommendation is suitable for the particular customer based on the customer’s investment profile and financial ability. In a case alleging unsuitable sales of DPP and real estate securities, this is the core rule typically analyzed, even though Rule 2111 itself became effective on July 9, 2012, after this particular arbitration was filed and settled.
FINRA Rule 2090 is the current know-your-customer rule. It requires reasonable diligence to know and retain the essential facts about the customer so the account can be serviced properly, special handling instructions can be followed, authority can be understood, and the firm can comply with applicable laws and rules. In the context of the allegations against Mesmer, this rule speaks to whether the customer’s financial circumstances, objectives, and account facts were adequately understood before allegedly unsuitable products were recommended. Rule 2090 also became effective on July 9, 2012.
FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade. When a broker is accused of recommending investments that were not appropriate for the customer, FINRA often views that kind of conduct through Rule 2010 as well, because unsuitable recommendations can amount to conduct inconsistent with fair dealing and industry standards.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.