The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Donald Kartoon. According to his publicly available FINRA BrokerCheck report, Donald Kartoon has been the subject of multiple customer disputes over the course of his career. Donald Kartoon is a California based securities broker. He has worked in the securities industry for forty-four years. During his career, he has been registered with eight different securities firms.
His Registrations
- Merrill Lynch (1970-1977)
- Drexel Burnham Lambert Incorporated (1981-1989)
- Oppenheimer & Co. (1989-1994)
- Salomon Smith Barney (1994-2001)
- Prudential Securities (2001-2003)
- Wells Fargo Advisors (2003-2010)
- Morgan Stanley (2010-2017)
- Hilltop Securities (2017-Present)
The Allegations
- In December 1994, a customer alleged that Donald Kartoon recommended unsuitable investments. This case was settled for $36,604 in damages.
- In November 1995, a customer alleged that Kartoon made material misrepresentations and recommended unsuitable investments. This case was settled for $13,599 in damages.
- In April 2001, a customer alleged that Kartoon excessively traded their account, breached his fiduciary duty, and managed their account negligently. This case was settled for $262,500 in damages.
- In March 2008, a customer alleged the details of his Auction Rate Security had been misrepresented to him by Kartoon. This case was settled for $250,000 in damages.
- In April 2008, a customer alleged that Kartoon failed to follow instructions and made unsuitable investments in Auction Rate Securities. This case was settled for $475,000 in damages.
- In October 2015, a customer alleged that Kartoon failed to follow instructions. This case went to arbitration where the customer was awarded $4,000 in damages.
What Does This Mean?
Securities brokers have a duty to their customers to always act in their best financial interests. This is their duty as a fiduciary. This means that brokers can only recommend investments that their customers are actually suited for. Brokers like Donald Kartoon can determine if a particular investment is suitable for their customer by looking at various different factors provided to them by the customer. This includes the customer’s investment objectives, financial situation, liquidity needs, and risk tolerance. Brokers who invest their customers contrary to these needs have either done so in a fraudulent manner, placing their own financial interests ahead of their customer’s, or in a negligent one. Regardless if the broker’s intent was fraudulent or negligent, managing a customer’s account unsuitably disqualifies them from the ability to perform their duties in the required manner.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Donald Kartoon, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
