Richard William Lunn Martin of Penang a stockbroker formerly employed by G.F. Investment Services LLC is the subject of a customer initiated investment related arbitration claim which settled for $117,000.00 in damages founded on accusations that (1) fiduciary duties owed to the customer had been breached (2) due diligence was not properly executed on investments before they were sold to the customer (3) poor recommendations were made regarding the investment strategy utilized for the customer’s accounts (4) exchange traded funds were in no way appropriate or suitable and (5) G.F. Investment Services LLC engaged in conduct violative of federal securities laws. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-01294 (Nov. 27, 2017).
FINRA Public Disclosure confirms that Martin is referenced in seventeen more customer initiated investment related disputes containing allegations of his violative conduct while employed with securities broker dealers including GF Investment Services LLC and LatAm Investment. In particular, a customer initiated investment related arbitration claim concerning Martin’s conduct was resolved for $500,000.00 in damages supported by accusations of poor performance on the exchange traded funds and stocks placed in the customer’s account. FINRA Arbitration No. 14-03679 (Jan. 18, 2016).
Then, a customer initiated investment related arbitration claim regarding Martin’s activities was settled for $290,000.00 in damages based upon allegations that investment recommendations made to the customer were not suitable in regards to the stocks and exchange traded funds positions held by the customer. FINRA Arbitration No. 15-02500 (May 11, 2016). Subsequently, a customer initiated investment related arbitration claim involving Martin’s conduct was resolved for $39,000.00 in damages founded on accusations that bad recommendations were made to the customer concerning exchanged traded funds that had been sold to the customer. FINRA Arbitration No. 16-00915 (Aug. 4, 2016).
Additionally, a customer filed an investment related arbitration claim concerning Martin’s activities where the customer requested unspecified damages supported by allegations that fraudulent recommendations and assurances had been made to the customer concerning exchange traded funds, causing the customer to incur unwarranted investment losses. FINRA Arbitration No. 17-01680 (July 3, 2017).
FINRA Public Disclosure additionally reveals that Martin has been barred from associating with any FINRA member in any capacity according to a FINRA Decision and Order of Offer of Settlement containing findings that Martin gave bad advice to customers in regards to their purchases of non-traditional exchange traded funds. Department of Enforcement v. Richard William Lunn Martin Disciplinary Proceeding No. 2013035817701 (Apr. 24, 2017).
According to the Order, Martin lacked an adequate foundation to conclude that it was suitable for him to advise customers to buy and hold non-traditional exchange traded funds in part because of those products not being intended for long-term investing. The Order stated that Martin foolishly believed that the world was facing an impending disaster and that the customers should utilize their non-traditional exchange traded funds to hedge against this supposed catastrophe from occurring.
The Order revealed that Martin advised customers to allocate the near entirety of their assets in the non-traditional exchange traded funds. Also, Martin told those customers to hold their positions for lengthy periods even though there were substantial risks which pertained to the holding of non-traditional funds for periods exceeding just one trading session. The Order also stated that Martin made unwarranted and exaggerated statements about future performance of investments. FINRA found Martin’s conduct violative of FINRA Rules 2010, 2210 and 2111.
