Bolstering the complaints against Tatro is that his official record reflects more than $3 million paid to his customers in settlements, according to one attorney. Among the allegations are that Tatro chose investments for his clients that were unsuitable and inappropriate based on their financial situation and risk tolerance. These investments typically generated high commission and were illiquid, with a higher degree of risk than the clients would have accepted, had they been made aware of the risky nature of the investments.
Furthermore, Tatro is alleged to have sold the same investments to a wide variety of clients, regardless of their actual investing needs. Among those investments were Real Estate Investment Trusts (REITs) and inverse and leveraged Exchange Traded Funds (ETFs). The ETFs are risky enough that they are considered highly unsuitable for ordinary investors.
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After going through her finances, the widow and her attorney allegedly discovered that a large portion of her money was lost in investments that were unsuitable for a woman with no risk tolerance and who needed her investments to pay for living expenses.
Arbitration claims have been filed against Tatro, alleging he failed to properly invest clients' assets in a suitable manner and further alleging that his primary goal was to generate commissions for himself by selling high fee, high commission products. Those actions, according to arbitration claims filed against Tatro, forced his former clients to drastically alter their standard of living and caused personal and financial losses.