Jonathan Altman, Revere Securities LLC Sued by Massachusetts Securities Division
Have you lost money with financial advisor Jonathan Altman of New York, New York? We are investigating allegations made by the Massachusetts Securities Division against Jonathan E. Altman, a former advisor at Revere Securities LLC. Revere Securities is based out of New York, New York. Massachusetts brought a complaint against both Altman and Revere Securities LLC.
Massachusetts alleged that from May 2012 to March 2015, Jonathan Altman engaged in abusive sales practices, including excessive trading and churning. Massachusetts also alleged that Revere Securities LLC failed to adequately supervise Altman. As an example, Massachusetts alleged that one investor had a cost-equity ratio of 20% in one account. The same investor had a turnover ratio of 7.33 in the account.
Excessive Trading or Churning
One of the most common ways to determine whether an account was excessively traded or churned is to determine the annual turnover ratio. This ratio shows how often the securities in the account are bought or sold within a year. Authority has held that an annual turnover of 4 or more is a “presumption” of churning, and an annual turnover of 6 or more is a “conclusion” of churning. Thus, if the accounts had turnovers over 7, then there would be a conclusion that there was churning or excessive trading.
Another way to determine whether there was excessive trading is the cost equity ratio. This ratio takes the commissions generated by the trading, divided by the average value of the account. This ratio essentially determines the returns that an account needs to make just to break even. Thus, an account with a cost-equity ratio of 20% would need to earn 20% just to break even from all the costs of trading.
Jonathan Altman was a financial advisor and registered representative of Revere Securities LLC from July 2010 to September 2016. He worked at a branch office in Boston, Massachusetts. Altman’s BrokerCheck report discloses that he was the subject of seven customer complaints.
Brokerage firms like Revere Securities LLC 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, the Seattle area, Chicago, and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in Massachusetts and New York in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Altman, Jonathan MA Complaint
Click to view: Altman, Jonathan BrokerCheck 11.14.16
HAVE YOU LOST MONEY WITH JONATHAN ALTMAN OR REVERE SECURITIES?
CONTACT ISRAELS & NEUMAN, PLC FOR A FREE CASE EVALUATION
Aaron Israels: (720) 599-3505
David Neuman: (206) 795-5798
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.