CMD is Investigating Claims Against Richard Martin and G.F. Investment Services, LLC for Recommending Unsuitable ETFs and Failure to Supervise

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Richard Martin and G.F. Investment Services, LLC for unsuitable recommendations and failure to supervise.

In August 2016, FINRA filed a complaint against Richard Martin alleging that he solicited, purchased and recommended that his customers hold non-traditional Exchange Traded Funds (ETFs) in their accounts for lengthy periods of time, despite the enormous risks associated with holding non-traditional ETFs for more than one trading session. The FINRA complaint alleges that as a result, Richard Martin did not have a reasonable basis to believe that the non-traditional ETF products he recommended were suitable for any customer. As part of his investment strategy, Richard Martin focused on one potential risk— namely, his prediction of the impending collapse of the monetary and financial system. In failing to account for any other risks, including the risk that his predictions regarding the collapse of the economy may not come to pass, Richard Martin recommended to virtually all of his customers non-traditional ETFs.  As a consequence of Richard Martin’s unsuitable investment strategy, Richard Martin’s customers sustained significant losses in the approximate amount of $8 million, and he benefited from commissions received in the approximate amount of $55,912. The complaint also alleges that Richard Martin distributed communications to the public about the non-traditional ETFs that failed to provide a sound basis for evaluating the facts, were misleading, and contained exaggerated and unwarranted language, promissory statements and projections of future provisions.

If you or someone you know lost money investing with Richard Martin and/or G.F. Investment Services, LLC, you may be entitled to recover your investment losses through FINRA arbitration.  CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or for a free and confidential case evaluation.