FINRA Arbitration Attorney Russell L. Forkey, Esq.
Recently, an English foreign national and his company filed a FINRA arbitration claim against a FINRA licensed firm by the name of E1 Asset Management, Inc. and various of its registered account executives and supervisors, Sohroub Zebarjadi, Charles Bernard Milligan, III, Kashif Mehdi Shaikh, Mike Shaikh and Jae Hun Kim.
In their statement of claim, the claimants have alleged that while they had investment objectives of growth, with the normal risks of the market, the respondents solicited the claimants to invest in speculative securities and recommended the use of high risk strategies, including the use of margin and options. These investments and the solicited strategies were recommended, by the respondents, during the systemic economic downturn in the period of 2007 through 2008. It is alleged, by the claimants, that the investments and the strategies were unsuitable for the them, which caused the claimants to lose a substantial sum of money.
According to the statement of claim, when the claimants brought their concerns of what was happening in their accounts to initially the account executive's manager and ultimately to the chief compliance officer, they were advised that as far as the firm was concerned the accounts were being handled properly. Then a series of bate and switches occurred where the firm replaced one executive executive with another that just continued with the unsuitable activity.
