Kerri Lynn Wasserman of New York New York president of Portfolio Advisors Alliance LLC is referenced in a customer initiated investment related arbitration claim in which the customer sought unspecified damages founded on allegations that between July of 2013 and August of 2017: (1) inappropriate stock and over-the-counter equities trades were effected in the customer’s account and (2) transactions executed in the customer’s account lacked the firm’s supervision. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03491 (Oct. 22, 2018).
FINRA Public Disclosure confirms that another customer filed an investment related arbitration claim concerning Wasserman’s conduct where the customer requested $99,300.56 in damages based upon accusations that Wasserman failed to supervise the over-the-counter equities trades placed in the customer’s account between July of 2013 and December of 2016 which caused the customer to experience unwarranted investment losses. FINRA Arbitration No. 18-01471 (Apr. 30, 2018).
These two complaints come after Wasserman was charged by Securities and Exchange Commission (SEC) in a Complaint alleging that Wasserman, inter alia, made misrepresentations about investments; and failed to prevent stockbrokers at Portfolio Advisors Alliance LLC from utilizing misrepresented information to solicit investment sales. Securities and Exchange Commission v. Kerri L. Wasserman Case No. 16-cv-00828 (Feb. 3, 2016).
According to the Complaint, Portfolio Advisors Alliance was the placement agent for securities issued by a company, American Growth Funding II, LLC, which was established to loan businesses funds. The Complaint stated that American Growth Funding II, LLC claimed it would provide purchasers of the high-yield securities with twelve percent returns, and represented within investment documentation that there was an annual audit of the company’s financials. Allegedly, information concerning American Growth Funding II, LLC’s management and loan valuations, which impacted investor returns, had been misrepresented.
SEC alleged Wasserman was cognizant of the misrepresentations in the American Growth Funding II, LLC offering documents; however, Wasserman enabled, or otherwise failed to prevent, stockbrokers from soliciting investment purchases from prospective customers based on the misrepresented information. The Complaint stated that Wasserman’s conduct was violative of Securities Exchange Act of 1934 Section 20(a) for the allegedly fraudulent activities committed by Portfolio Advisors Alliance in violation of Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5.
Wasserman has been registered with Portfolio Advisors Alliance LLC since January 27, 2009.
