Janney Montgomery Scott LLC broker Christopher Sinkula (CRD# 2001512) is accused of over-concentrating investment portfolios in the high-risk energy sector. Sinkula was registered with Janney Montgomery Scott LLC in Stuart, Florida from 2008 to 2019.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
Sinkula has been the subject of 14 customer complaints between 1997 and 2017, three of which were denied and one was closed without action, according to his CRD report. Most of the customer complaints were regarding common and preferred stocks.
- August 2020. “Unsuitable allocation of high yield securities from 2013 through 2020.” The customer is seeking $200,000 in damages in this pending complaint.
- July 2019. “Claimant alleges that unsuitable investments were made in his account.” The customer sought $132,000 in damages and the case was settled for $40,000.
- March 2019. “Claimant alleges that unsuitable investments were made in his account.” The customer sought $50,000 in damages and the case was settled for $40,000.
- August 2018. “Claimants allege that unsuitable investments were made in their account.” The customer sought $400,000 in damages and the case was settled for $95,000.
- April 2018. “Claimant alleges that unsuitable investments were made in their accounts.” The customer sought $2.3 million in damages and the case was settled for $205,000.
- April 2018. “Claimant alleges that unsuitable investments were made in his account.” The customer sought $1 million in damages and the case was settled for $100,000.
- October 2017. “Claimant alleges that FA made unsuitable investments in his account by creating a high concentration in energy stocks.” The customer sought $100,000 in damages and the case was settled for $24,750.
- July 2017. “Claimant alleges that FA made unsuitable investments in her account by creating a high concentration in energy stocks.” The customer is seeking $100,000 in damages and the case was settled for $22,900.
- April 2012. “Client alleges that his financial advisor misrepresented and failed to adequately understand the risks and features associated with a variable annuity product sold to claimant.” The customer sought $879,680 in damages and the case was settled for $200,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Janney Montgomery Scott LLC may be liable for investment or other losses suffered by Sinkula’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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