Among complaints made about William Tatro are that he recommended investments that were completely unsuitable for clients, resulting in his clients suffering massive losses—often a substantial portion of their life savings. The investments Tatro recommended were reportedly typically high commission, illiquid investments that have a higher degree of risk than clients allege they would have accepted.
William Tatro Complaints
Under FINRA regulations, brokers can only make recommendations that are suitable for the investors. For example, a highly risky investment would not be considered suitable for a retired investor, who cannot financially withstand substantial losses. Annuities, which are high commission and restrict the investor's ability to access funds, are also not considered suitable for retirement accounts.
According to complaints, Tatro repeatedly sold Real Estate Investment Trusts (REITs), variable annuities—a high-commission product—and leveraged inverse ETFs (Exchange Traded Funds) to clients for whom the investments were entirely unsuitable.
Furthermore, despite a FINRA warning about leveraged inverse ETFs being highly unsuitable for ordinary investors and recommending that the ETFs be held for only a short time, Tatro allegedly recommended the product to multiple investors and held them long-term. According to investors, the result was massive losses in their accounts.
An arbitrator hearing a claim against Tatro found, "There was no evidence that Mr. Tatro properly investigated leveraged inverse funds. In fact, it is highly unlikely that Mr. Tatro could have done so, for such research would have demonstrated that holding leveraged inverse funds for a lengthy period of time dramatically increased risk of the claimant." The same arbitrator noted that Mr. Tatro's explanation of the purchase of leveraged inverse funds, "lacks credibility."
That particular arbitration, called Mid-Lakes Management Corp. vs. Eagle Steward Wealth Management LLC, resulted in an award of $530,449.00 in damages to the claimant.
According to information from FINRA, William Tatro has a lengthy list of complaints against him—more than 60 accumulated during his time as a financial advisor. Some of those complaints resulted in lawsuits against Tatro, while others resulted in arbitration claims. According to his official record over $3 million has been paid to his customers in settlements so far. Other claims against Tatro are currently pending.
William Tatro Lawsuit
Willaim Tatro owned a financial management company called Eagle Steward Wealth Management LLC. Although he operated out of New York and Arizona, his clients could live anywhere in the US. He is no longer licensed to act as a stockbroker anywhere in the United States.
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Last updated on Oct-21-11