Ashley Romiti of San Juan Capistrano, California, a financial advisor registeredwith Realta Equities and Realta Investment Advisors, was the subject of an investor complaint alleging Romiti recommended unsuitable investments in Delaware Statutory Trust (DST) private placements between March 2022 and December 2023. the pending complaint alleges unspecified damages.
FINRA rules prohibit brokers from making investment recommendations that are considered unsuitable for an investor. Unsuitable investments and strategies are understood as those not based in a “firm understanding of both the product and the customer,” as described by FINRA Rule 2111. This rule stipulates that brokers must conduct “reasonable diligence” to ascertain whether investments are suitable for a customer’s background and objectives.
They must ensure that the recommendation is suitable for some investors; that it is suitable for the individual customer to which they are making it; and that, if they are recommending a series of transactions to a customer over whose account they have actual or de facto control, the transactions are suitable when taken together as well as when viewed in isolation. Brokers who make unsuitable investment recommendations may be liable to their clients in the event of losses.
The Guiliano Law Group, P.C.
For more than thirty years, our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or a confidential evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
If you believe that you have been the victim of misconduct or fraud, contact us for a free consultation. We handle all cases on a contingency fee basis meaning that there is no cost or obligation, unless we are able to make a recovery for you.
