Many investors are unaware of the legal recourse available to them after losing money due to securities broker negligence and/or misconduct. The truth is investors who have lost money in this fashion  may be entitled to damages. The law firm of Oakes & Fosher is currently interested in hearing from investors who feel this may be them.

Oakes & Fosher is currently investigating the possible negligence and/or misconduct by securities broker John A. Busco. According to his publicly available FINRA BrokerCheck report, John A. Busco has been the subject of multiple customer disputes filed over the course of his career.

John A. Busco is a New York based securities broker. He has worked in the securities industry for thirty-six years. During his career, he has been registered with eight different securities firms.

His Registrations

  • Dean Witter Reynolds (1982)
  • E.F. Hutton & Company (1982-1988)
  • Shearson Lehman Hutton (1988)
  • Merrill Lynch (1988-2001)
  • UBS Financial Services (2001-2008)
  • Citigroup Global Markets (2008-2009)
  • Morgan Stanley (2009-2019)
  • Laidlaw & Company (2019-Present)

The Allegations

  • In April 2001, a customer alleged that John A. Busco made trades in their account that were both unauthorized and unsuitable.
  • In May 2003, a customer alleged that a variable annuity that John A. Busco purchased for them on their behalf was unsuitable.
  • In August 2008, a customer alleged that the securities they purchased on John A. Busco’s recommendation were misrepresented.
  • In April 2011, customers alleged that John A. Busco recommended unsuitable securities and failed to curtail further losses. This case was settled for $40,000 in damages.
  • In March 2019, customers alleged unsuitability. This case is currently pending. The customer is seeking an undisclosed amount in damages.
  • In July 2019, a customer alleged that Busco excessively traded their account. This case was settled for approximately $60,000 in damages.

What Does This Mean?

Securities brokers have a legal obligation to only recommend securities to customers that are suitable for them. A customer’s suitability is determined by their liquidity needs, financial situation, investment objectives, and risk tolerance. Securities brokers are expected to adequately determine a customer’s suitability based on these factors.

Securities brokers also have an obligation to trade their customers’ accounts responsibly even if the securities they recommended were suitable. If a securities broker executes trades more frequently than is necessary, it can cause the customer to incur additional fees and can result in trading losses.

Investors who believe that they lost money due to their securities broker making unsuitable investment recommendations, or from their securities broker excessively trading their account, may be entitled to damages.

Oakes & Fosher Can Help

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with John A. Busco, please contact Oakes & Fosher for a free and private consultation.