Erez Law is currently investigating former G.F. Investment Services, LLC financial advisor Daniel Hushek III (CRD# 4250117) regarding losses sustained from non-traditional exchange traded funds (ETFs). Hushek has been registered with G.F. Investment Services, LLC in Sarasota, Florida from 2005 to January 2017.
Non-traditional ETFs are complex products that seek to return a multiple of the performance of the underlying index or benchmark, the inverse of the performance, or both, and use swaps, futures contracts, and other derivative instruments to achieve these objectives. Most non-traditional ETFs reset daily, meaning they are designed to achieve their stated objectives only on a daily basis and thus typically are inappropriate as an intermediate or long-term investment in a brokerage account. Additionally, due to the effect of compounding, the performance of non-traditional ETFs can differ significantly from the performance of their underlying index or benchmark. an effect that can be magnified in volatile markets.
In July 2017, Hushek was suspended from FINRA for 15 months and sanctioned to $10,000 in civil and administrative penalties and fines after he consented to the sanctions and to the entry of findings that he failed to adequately supervise the sales practice of a registered representative who recommended and engaged in unsuitable trading of non-traditional exchange traded funds (ETFs). According to the FINRA findings, Hushek’s supervisory failure facilitated the representative’s ongoing sales practice violations, resulting in realized and unrealized losses of more than $2.4 million in a customer account.
Hushek has been the subject of one customer complaint in 2017, according to his CRD report:
October 2017. “Claimant is alleging negligent supervision of broker-dealer, negligent hiring of registered representative, and assurances and recommendations provided to customer that were found to be fraudulent and in violation of suitability rule.” The case is currently pending.
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, G.F. Investment Services, LLC may be liable for investment or other losses suffered by Hushek’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and 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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