More and more people are placing their hard-earned wealth into the hands of financial advisors and brokers, with the expectation that their investments will yield good returns. Unfortunately, the trust of some investors was reportedly broken by a securities broker, Gregory Allen Foster [CRD: 1532735]. Foster, who had been with UBS Financial Services Inc since 2010, is facing allegations of non-compliance with client instructions, causing potential financial losses. Revelations registered on Financial Industry Regulatory Authority (FINRA) BrokerCheck unearthed several disputes involving the broker.
Alleged Failure to Comply with Client Instructions
In one such dispute, on record between March 17th, 2020, and March 19th, 2020, a UBS Financial Services Inc. client accused Foster of failing to liquidate their account in accordance with their explicit instructions, suffering a financial hit. The repercussions led to the client filing a complaint of substantial damages to the order of $575,000. Fast-forward to June 1st, 2020, UBS Financial Services Inc, to settle the misty issue, compensated the client $466,625.37.
Accusation of a Botched Trade
A lousy trade allegation followed suit. A client repeatedly contested Gregory Foster’s sales practices, filing a complaint on March 27th, 2023. Their damning assertion was that Foster had dropped the ball, causing a much-affecting delay in the filing of a required Form 144. The botched filing saw the untimely cancellation of their trade. This unfortunate sequence of events reportedly caused the client’s wealth to dwindle, incurring damages of roughly $300,000. To resolve the embattled situation, UBS Financial Services Inc. compensated the client $326,111 on August 28th, 2023.
Negligence in Account Liquidation
In a resurgence of a similar issue, another complaint rolled in about Foster on June 1st, 2020. This client agreed that Foster had failed to comply with their liquidation instructions, leading to a replication of the prior settlement; UBS Financial Services compensated the client $466,625.37 in damages.
Before Foster’s migration to UBS Financial Services Inc., he also faced a significant allegation from a client while working at RBC Wealth Management. The allegation keyed into a similar ordeal – Foster did not follow client instructions to liquidate stocks. This issue found its resolution with RBC Wealth Management taking it upon themselves to settle the matter by compensating the client $9,999 on February 4th, 2010.
All these cases address a significant concern in financial portfolio management; clients entrust brokers with their capital, and any deviation from set investment plans can result in significant financial losses. These incidents are typically violations of FINRA regulations, which require brokers to follow clients’ instructions strictly.
While Foster and the brokerage firms he worked for have denied all accusations of sales practice violations, it’s crucial for investors to stay vigilant about who they trust with their investments. Always be sure to do due diligence and research brokers and their background thoroughly before deciding.
If you believe to have sustained losses due to Gregory Foster’s actions, consider reaching out to an experienced securities attorney for consultation about a possible recovery.