NAPLES, Fla.–Vernon Litigation Group said it has filed a “significant FINRA arbitration claim against CUSO Financial Services” on behalf of a Texas-based credit union member that alleges what it calls a “troubling practice” in the securities industry.
“It is a practice referred to in the securities industry as selling away, which basically means that the financial advisor is selling investments to the investor outside of the brokerage firm where the financial advisor is registered,” Vernon Litigation Group said in a statement. “In this latest case, Vernon Litigation alleges that their Texas teacher client was led to invest in something referred to as ‘Aurora’ that involved a former CUSO advisor – Conrad Bautista – who has been barred from the securities industry by FINRA.”
Vernon Litigation Group, which has filed similar actions against San Diego-based CUSO Financial in the past, said its FINRA arbitration claim was filed in Texas and alleges breach of fiduciary duty and negligence and supervision lapses. Previously, Vernon Litigation Group said it performed a detailed analysis of CUSO Financial Services and its business practices in working with credit union clients.
“Beyond this case, Vernon Litigation is troubled by the affiliation of many credit unions with independent broker dealers who heavily push high commission investment products,” Vernon Litigation Services said in a statement.
The firm said it is seeking additional plaintiffs.