Last Updated: November 2024 (Leesburg, Virginia)
National securities fraud lawyers at Patil Law P.C. are investigating broker Fridtjov Markussen (CRD #4323396) of AMJ Financial Wealth Management regarding a pending customer dispute alleging unsuitable investment recommendations with alleged damages of $175,000.
Critical Insights About Leesburg, VA Financial Advisor Fridtjov Markussen
- Advisor Name: Fridtjov Markussen
- CRD: 4323396
- Location: Leesburg, VA
- Current Employer: AMJ Financial Wealth Management
- Classification: Investment Advisor Representative
- Primary Location: Leesburg, VA
- Recent Firm Change: Transitioned to Osaic Wealth in August 2024
- Can Markussen be sued in FINRA arbitration: Yes
- Recent Disclosures: One pending customer complaint
Current Customer Dispute
Portfolio Management Complaint (2024)
- Allegations: Portfolio investments not aligned with client’s stated wishes
- Products Involved: Listed equities and mutual funds
- Alleged Damages: $150,000
- Status: Pending arbitration through AAA
- Case Number: 1-24-0007-0746
Analysis of Allegations
Investment Management Concerns
The pending arbitration raises issues regarding:
- Portfolio alignment with client objectives
- Risk tolerance adherence
- Investment selection process
- Client communication practices
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
The SEC’s Regulation Best Interest fundamentally changed how broker-dealers must interact with retail customers by establishing a “best interest” standard of conduct. This regulation requires advisors to put their clients’ interests ahead of their own financial gains when making recommendations. It mandates thorough documentation of the basis for investment recommendations and requires full disclosure of all material facts, including costs, risks, and potential conflicts of interest. For cases involving portfolio management, like Markussen’s, this means demonstrating that investment selections were made with the client’s best interests as the primary consideration.
FINRA Rules and Their Significance
FINRA Rule 2111 (Suitability) requires investment advisors to have a reasonable basis for believing their recommendations are suitable for clients based on their investment profile. This comprehensive rule examines factors including age, financial situation, tax status, investment objectives, and risk tolerance. For portfolio management, it requires ongoing assessment of investment suitability, not just at the time of initial recommendation.
FINRA Rule 3110 (Supervision) mandates that firms establish and maintain a system to supervise activities of their associated persons that is reasonably designed to achieve compliance with securities laws and regulations. This includes monitoring trading activity, reviewing communications with the public, and maintaining detailed records of supervisory activities.
FINRA Rule 2090 (Know Your Customer) works alongside the suitability rule by requiring firms to use reasonable diligence to understand the essential facts concerning every customer. This includes understanding their financial situation, tax status, investment objectives, and other key information necessary for proper account servicing.
Professional Experience
Markussen’s career includes positions at:
- AMJ Financial Wealth Management (2018-Present)
- Osaic Wealth (2024-Present)
- Triad Advisors LLC (2015-2024)
- Waddell & Reed (2009-2013)
Professional Qualifications:
- Securities Industry Essentials Examination
- Series 7 (General Securities Representative)
- Series 66 (Combined State Law)
- Certified Financial Planner designation
Red Flags for Investors
- Recent Firm Transition – Changed firms during pending complaint
- Portfolio Management Issues – Questions about investment alignment
- Arbitration Claims – Current dispute over investment decisions
- Communication Concerns – Allegations about portfolio wishes being ignored
Implications for Current and Former Clients
Investors should review their accounts for:
- Investment alignment with stated objectives
- Risk level appropriateness
- Portfolio concentration issues
- Performance relative to investment goals
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have concerns about investments made with Fridtjov Markussen, contact Attorney Patil at (800) 950-6553 for a free consultation. Cases handled on contingency – no recovery, no fee.
