INVESTIGATION: Justin Williams of Williams Wealth Management – Portland, OR
Justin Williams of Williams Wealth Management, Suspended Three Years from Securities Industry
Have you lost money with financial advisor Justin Williams of Portland, Oregon? The law firm of Israels & Neuman is investigating allegations made by the Oregon Division of Financial Regulation against Justin David Williams. Oregon suspended Williams from the securities industry for three years and fined him $40,000. Oregon was investigating Williams regarding allegations that Williams bought and sold inverse and leveraged ETFs (exchange traded funds) in his customers’ accounts, which Oregon deemed to be an unfair practice under its securities act.
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.
Justin Williams was an advisor and representative of Williams Wealth Management from 2007 to February 2015. He worked at a branch office in Portland, Oregon.
Brokerage firms like Williams Wealth Management 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 Vancouver, Washington; Seattle, Washington; and Denver, Colorado. We represent investors in FINRA arbitration proceedings in all 50 states, including investors throughout Oregon and the Portland area. Our attorneys have recovered millions of dollars for investors against many brokerage firms in the past.
Click to view: Williams, Justin Oregon Order
Click to view: Williams, Justin BrokerCheck 7.8.19
If you lost money with Justin Williams or Williams Wealth Management, please CONTACT US at 720-599-3505 for a free evaluation of your case.