The customer is seeking damages of $6M for Potratz’s allegedly unsuitable and inappropriate recommendations.
The Sonn Law Group is investigating allegations that Rodney Potratz made unsuitable recommendations. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Rodney Potratz (CRD#: 2367896), registered representative with FSC Securities Corporation in Clive, Iowa, is currently involved in a customer dispute in which a client is seeking $6 million in damages.
The customer dispute was brought in November 2019. The claimants alleged various alternative investments were inappropriately recommended and requested $6,000,000 in damages. According to the Broker Comment, Potratz plans to “defend this claim vigorously.”
Potratz was also the subject of a customer dispute in December 2011. In that case, the client alleged that over a period of years, unsuitable recommendations were made in her accounts and some were made without prior approval. The matter was settled for $30,000.
Alternative investments, sometimes referred to as private placements, can potentially provide investors with significant returns—however, they are associated with large risks. These investments are typically only open to so-called “accredited investors” (typically individuals with a net worth of at least $1 million or an annual income of $200,000 or more). Given the risks inherent in investing in alternative investments, investors should only invest what they can afford to lose. Still, brokers have a responsibility to make sure that all investments are appropriate. This is called a “reasonable basis suitability analysis.”
This means that brokers can only recommend securities that are deemed suitable for a client given that client’s age, income, investment objectives, risk tolerance, and other factors. Brokers must do their due diligence when recommending any investment to a client and a failure to do so can lead to liability.
Contact Us Today
The Sonn Law Group is currently investigating allegations that Rodney Potratz made unsuitable recommendations. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.