Articles Posted in Brookstone Securities

The Financial Industry Regulatory Authority is permanently barring former National Securities broker Zachary Bader from the securities industry in the wake of allegations filed by numerous investors. Bader, who was let go from the National Securities Corporation, also was previously registered with Craig Scott Capital and Brookstone Securities. According to BrokerCheck, five customer complaints and two regulatory sanctions have been brought against him.

Bader is accused of excessive trading, making unsuitable investment recommendations to at least 21 customers by advising them to put their money in the iPath S&P 500 VIX Short Term Futures ETN (VXX), showing reckless disregard of clients’ interests, improper due diligence, breach of fiduciary duty, churning, providing inadequate investment advice, and breach of contract.

iPath S&P 500 VIX Short Term (VXX)
The iPath S&P 500 VIX Short Term is an exchange-traded note. Many ETNs are only appropriate for short-term trading and/or institutional investors. For example, the VXX exposes investors to returns of certain futures contracts on the VIX Index and it is considered a bearish investment. It is not appropriate for certain equity positions. The VXX comes with very specific risks and over time will lose value as futures contracts on the VIX Index go down too.
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Our securities fraud lawyers are investigating claims for clients of Richard Buswell and Brookstone Securities over private placement units sales in Advanced Blast Protection, as well as charges that clients received unsuitable recommendations.

The Financial Industry Regulatory Authority has made public records noting that Brookstone Securities terminated Buswell’s employment this year in the wake of investigations involving allegations of fraud, unsuitability, failure to disclose complaints, churning, and other “disclosable matters” that may be “outstanding.” Buswell’s employment termination was reportedly punitive.

Some investors say they lost their retirement because Buswell gave them the wrong advice and defrauded them. He is also accused of overstating potential earnings for clients, convincing some of them to invest in companies that would give him commissions, and in some cases was given higher commissions than expected. Buswell is also accused of making high risk investments for investors who would have been better off making more conservative to moderate moves.

Investors have also filed complaints against Buswell over the sale and marketing of private placement units in Advanced Blast Protection. ABP is based in South Florida. The company’s clients were supposed to receive principal payments this year but ABP defaulted. As a result, investors were left with illiquid investments.

Please contact Shepherd Smith Edwards & Kantas LTD LLP if you bought ABP private placement or were an investor client of Brookstone and Buswell.

Related Web Resources:
Investors sue advisers, 2TheAdvocate.com, May 15, 2009
FINRA
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