According to documents, investors allege Tatro made investments that were not suitable for his clients, based on their financial goals and priorities. Specifically, they claim their money was put into high commission, risky investments that were unsuitable based on their risk tolerance and financial needs. This failure to find suitable investments allegedly resulted in his clients losing portions of their life savings.
Furthermore, they argue, various financial firms should have been alerted to Tatro's conduct and moved to protect the investors. According to the claimants, Tatro's prior history involved multiple customer complaints and should have alerted Tatro's financial firms to the need for Tatro to be closely trained and supervised. As a result of the respondents' failures, the claimants allege, Tatro was able to mismanage his clients' money, causing massive losses.
The claimants allege that Tatro and his financial firms made untrue material representations and omitted important facts about the investments products purchased on his clients' behalf. Among those alleged misrepresentations were that clients' money was being invested in a manner that ensured safety of their principal. Tatro's clients further allege that Tatro owed his clients a fiduciary duty to act in their best interests because he had broad discretion in their investment account.
READ MORE WILLIAM TATRO LEGAL NEWS
Finally, they argue that transactions were executed without the authorization of clients, including transactions that generated high commissions for Tatro, for the sake of generating high commissions.
When investors believe their accounts have been churned—that is, excess transactions have been undertaken for the sake of generating high commissions—or their broker is not acting in their best interest, they may be eligible to file an arbitration to attempt to recover lost funds.