Further scrutiny has been drawn to the financial advisory industry as Steve Gessner, a Baltimore-based financial advisor, has allegedly recommended unsuitable investments, as noted in a recent investor complaint. Gessner, identified with CRD# 2650114, has a recorded experience of 27 years in the securities industry. Currently an investment advisor with WPG Financial Group, he was formerly affiliated with Cambridge Investment Research.
Based on records from the Financial Industry Regulatory Authority (FINRA), Gessner’s BrokerCheck report reveals one investor complaint lodged in June 2023. During his tenure at Cambridge Investment Research, the investor alleged that Gessner made recommendations for unsuitable and high-risk investment products, including oil and gas investments and real estate securities. At present, the complaint seeks unspecified damages.
So, here lies a fundamental question: What does this reveal about investment policies, and what measures are in place to address such concerns?
To begin with, FINRA’s Rule 2111 bolsters investor protection by imposing a ‘suitability standard.’ According to the rule, brokers are required to have a justified reason to believe that their recommended investment strategies involving securities are suitable for the customer. They should obtain this belief by carefully scrutinizing information about the customer’s investment profile. Consequently, if brokers recommend any investments for which they lack adequate grounds of suitability, they may be held accountable for any incurred damages.
Taking a closer look at Gessner’s professional journey, his 27-year tenure in the securities industry has seen associations with several financial institutions. He started his career with Mony Securities Corporation (New York) in 1995 and served them for ten years. Subsequently, he joined AXA Advisors (again in New York) in 2005 and later transferred to Woodbury Financial Services in Baltimore later that year.
In 2012, he selected Cambridge Investment Research in Baltimore as his next service provider before moving to United Planners Financial Services of America between 2018 and 2021. Since 2018, he is rendering his services to Baltimore’s WPG Financial Group.
Mr. Gessner’s experience includes the successful completion of five securities industry qualifying exams, including Series 6, 7, SIE, 65, and 63. As of July 16, 2023, he remains a licensed investment advisor in Maryland.
As we navigate the intricacies of this case, we need to ask ourselves: How can we better protect investor interests, and what role do law firms play in this scenario?
Legal firms such as Haselkorn & Thibaut dedicate their resources to representing investors in the vicinity of Maryland and across the United States. These firms strive relentlessly to voice the grievances of investors who have incurred significant investment losses. For any matters concerning financial advisement, it is important to consult a legal professional. So, if you or anyone you know has experienced investment losses, don’t hesitate to contact Haselkorn & Thibaut at 1-800-856-3352 or complete their online contact form for a confidential, no-obligation consultation.
With the increasing complexity and dynamism of the financial market, it is of utmost importance to discuss the following question: who do we trust with our investments, and how can we ensure that our financial advisors act prudently on our behalf?
