The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker John Pronovost. According to his publicly available FINRA BrokerCheck report, John Pronovost has been the subject of multiple customer disputes.

John Pronovost is a Connecticut based securities broker. He has worked in the securities industry for thirty years. During his career, he has been registered with three different securities firms.

His Registrations

  • G.R. Phelps & Co. (1989-1996)
  • MML Investors (1996-2008)
  • Cambridge Investment Research (2008-Present)

The Allegations

  • In March 2018, a customer alleged that John Pronovost misrepresented a mutual fund. The customer also alleged that this mutual fund was unsuitable. This case was settled for $16,000 in damages.
  • Also in March 2018, customers alleged that John Pronovost misrepresented a mutual fund. This case went to arbitration where the customer was awarded $41,270 in damages.
  • In April 2018, a customer alleged that a mutual fund purchased on John Pronovost’s recommendation in 2016 was unsuitable given his risk tolerance. This case was settled for $75,000 in damages.
  • In June 2018, customers alleged that John Pronovost’s recommendation to purchase LJM mutual funds was unsuitable. The LJM mutual fund was an incredibly risky security that took very risky bets on stock market swings. This case was settled for $30,000 in damages.
  • In July 2018, customers alleged that John Pronovost recommended unsuitable securities. This case was settled for $250,000 in damages.
  • In December 2018, more customers alleged that John Pronovost recommended the highly unsuitable LJM mutual funds. This case was settled for $60,000 in damages.

What Does This Mean?

Mutual funds are most prominetly seen as safer alternatives to traditional equities. This is because mutual funds encompass a variety of different equities, so when one security falters, the fund is only slightly affected. This is the case for mutual funds that are well diversified that is. Mutual funds that are over-concentrated in risky securities are just as risky as the securities themselves. These mutual funds disguise themselves to trick investors into thinking they are investing in safe and conservative investments that match their objectives. Securities brokers should be able to discern if a particular mutual fund is suitable for a particular investor by looking at factors like investment objectives, age, financial situation, risk tolerance, and liquidity needs. They cannot excuse themselves by claiming they were unaware of a mutual fund’s unsuitability.

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 John Pronovost, 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.