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WARNING! Impending Investigation of ANDREW HARDIE

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15
Oct

WARNING! Impending Investigation of ANDREW HARDIE

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WARNING!  Impending Investigation of ANDREW HARDIE

Andrew Hardie, formerly with Stifel Nicolaus, Subject of SEC Complaint

 

Have you lost money with financial advisor Andrew Hardie of Rogers, Arkansas?  We are investigating allegations made by the Arkansas Securities Department.   Arkansas alleged that Hardie bought and sold inverse and leveraged ETFs (exchange traded funds) in his customers’ accounts without having a reasonable basis that such were suitable for his clients.

 

Many of Hardie’s clients held these ETFs for several years, even though they are only meant to be held for intra-day trading.  Hardie recommended the purchase of several ETFs, including the Proshares Ultrashort S&P 500 fund, Proshares Short S&P 500 fund, and Direxion Daily S&P 500 fund.  To settle these allegations, Hardie agreed to pay a $5,000 fine and a 65-day suspension.

 

Inverse and leveraged ETFs are often misused, by retail investors and even financial advisors.  The regulators and others have long-warned the securities industry about the dangers of inverse and leveraged ETFs.  These are designed to be day-trading vehicles, but often financial advisors recommend holding these ETFs in an investor’s accounts for weeks or even months.

 

FINRA has stated that “inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets.”  See FINRA Regulatory Notice 09-31 at page 1.  This Notice reminds members who sell these products to “make every effort to familiarize themselves with each customer’s financial situation, trading experience, and ability to meet the risks involved with such products and to make every effort to make customers aware of the pertinent information regarding the products.”  Id. at 3, citing to NASD Notice To Members 05-26.

 

Andrew Hardie was a financial advisor and registered representative of Stifel Nicolaus from August 2010 to April 2015.  He was also affiliated with a number of other firms, including Cabot Lodge Securities and Wilbanks Securities.  He worked at branch offices Rogers, Arkansas.   He has been the subject of at least seven customer complaints, and he was also fired by Stifel Nicolaus in 2015.

 

Brokerage firms like Stifel Nicolaus have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

 

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area.  We represent investors in FINRA arbitration proceedings in all 50 states, including investors throughout Arkansas.  Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Stifel Nicolaus.

 

Click to view:  Hardie, Andrew BrokerCheck 11.10.17

Click to view:  Hardie, Andrew Arkansas Order

 

If you lost money with Andrew Hardie or Stifel Nicolaus, please CONTACT US at 720-599-3505 for a free evaluation of your case.

 

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency.  Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency.  All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact.  This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice.  Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis.  In contingent representation, clients may still be liable for costs.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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