Derek Grimm of Winter Park, Florida, financial advisor previously registered with Merrill Lynch and RBC Capital Markets is the subject of any customer initiated investment related complaint that he allegedly recommended unsuitable investments.
FINRA Public Disclosure discloses another investor complaint, filed in September 2025, which alleged that Grimm while associated with Merrill Lynch, he misrepresented and recommended unsuitable investments, omitted material facts, over-concentrated investments, and failed to act in the customer’s best interest. This complaint alleges damages of $100,000.
Failure to diversify, also referred to as over-concentration or concentration, denotes a broker’s failure to invest a customer’s portfolio among a variety of investments, market segments, and/or asset classes, . “A diversified portfolio,” FINRA states in its investor resources, “tends to be harder to achieve than simply following the mantra: don’t put all your investment eggs in one basket.” To avoid the risks of over-concentration, investors are advised to diversify their portfolios across and within major asset classes, rebalance their portfolios on a regular basis, educate themselves about the underlying investments in their mutual funds or exchange-traded fund holdings, and keep track of their investments’ liquidity.
Investors should be aware that FINRA rules and other securities industry standards prohibit brokers like Mr. Grimm from giving customers incomplete or misleading information regarding investments. FINRA Rule 2020 specifically stipulates that no registered representative may “effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.” Brokers who make misrepresentations or omissions of material facts regarding investment recommendations may lead their clients to invest in unsuitable securities, in violation of FINRA Rule 2111. Representatives who misrepresent and/or recommend unsuitable investments may be held liable for damages in the event of losses. They may also be subject to disciplinary action by FINRA, the Securities and Exchange Commission, or state securities regulators.
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.
