Vernon Litigation Group and Attorney Kristian Kraszewski represent four families with claims involving EcoVest Capital conservation easements sold by Aaron Sevigny of United Planners Financial Services of America. EcoVest Capital investors now owe substantial tax penalties and interest on their EcoVest Capital investments. According to Mr. Sevigny’s FINRA Brokercheck CRD, there are at least 8 disclosures relating to alternative investment sales practices. FINRA has specifically reminded firms such as United Planners about alternative investment sales practices in Notice to Members 03-71 that:
Given the complex nature of NCIs [Non-Conventional Investments aka Alternative Investments] and the potential for customer harm or confusion, members are cautioned to ensure that their sales conduct procedures fully and accurately address any of the special circumstances presented by the sale of NCIs. Additionally, NASD is concerned that investors, particularly retail investors, may not fully understand the risks associated with these products.
FINRA went on to remind members offering Non-Conventional Investments such as REITs and other alternatives of their obligations to: (1) conduct adequate due diligence to understand the features of the product; (2) perform a reasonable-basis suitability analysis; (3) perform customer-specific suitability analysis in connection with any recommended transactions; (4) provide a balanced disclosure of both the risks and rewards associated with the particular product, especially when selling to retail investors; (5) implement appropriate internal controls; and (6) train registered persons regarding the features, risks, and suitability of these products.
If you, or one of your family members or friends, have suffered losses in EcoVest Capital or other alternative investments or REITs due to unsuitable investment advice from your financial advisor, please contact one of the securities lawyers at Vernon Litigation Group to discuss your rights. Call (239) 319-4434 for a free, confidential consultation.