JAMES CROSSON ACCUSED OF MISREPRESENTATION

 James Crosson is presently operating as a Rhode Island based securities broker. He has worked in the securities industry for thirty-four years. During his career, he has been registered with five different securities firms.

His Registrations

Wolfson, Zalkind & Company (1984-1991)

LPL Financial Corporation (1991-2009)

Investors Capital Corp. (2009-2015)

Voya Financial Advisors (2015-2019)

Lincoln Financial Securities Corporation (2019-Present)

The Allegations

In February 2019, a customer alleged that James Crosson recommended the unsuitable Castle Brands security. This case was settled for $35,563 in damages.

In July 2019, customers alleged that James Crosson misrepresented Castle Brands to them and misled them about how much stock he purchased on their behalf. This case is currently pending. The customers are seeking $39,703 in damages.

Also in July 2019, customers alleged that the risks associated with Castle Brands stock had been misrepresented to them by James Crosson. They also alleged that the amount of stock Crosson purchased on their behalf had been excessive. This case is currently pending. The customer is seeking $85,000 in damages.

What Does This Mean?

Securities brokers have a legal obligation to disclose all relevant information to their customers regarding their investments and potential investments. They also have an obligation to disclose all information truthfully. When securities brokers, like James Crosson, give false details to investors regarding their investments or potential investments it is known as misrepresentation. Investors who have been victims of a securities broker’s misrepresentation may have purchased unsuitable securities that they would not have otherwise purchased. Investors who believe they have lost money due to a securities broker’s misrepresentation may be entitled to damages.

The Suitability of Castle Brands

Castle Brands is a very high risk security. This means that this product is highly unsuitable for most investors. This suitability is determined by a customer’s investment objectives, risk tolerance, and financial situation. Securities brokers are expected to conduct the necessary due diligence required to discern whether or not certain products are suitable for certain investors.