Financial Expert Advises on Breach of Fiduciary Duty by Private Wealth Manager

This case involves a Plaintiff who suffered significant equity losses while working with a private wealth manager. The Defendant provided investment advice, financial planning and other consulting services to investors. The plaintiff initially established various securities accounts with the defendants. At various points in time afterwards, the Plaintiff with Defendants, relied on his advice and investment recommendations, including development of a financial plan for which the plaintiffs paid a fee. The plaintiffs relied upon the defendants representatives concerning its abilities, expertise and recommendations. The defendants outlined a detailed financial plan whereby the account equity would be used to run plaintiffs business. This financial plan was based upon the defendants analysis of finances and other requested disclosures by the plaintiffs. The plaintiffs suffered significant losses resulting from the financial crisis and market collapse. It is alleged that the defendants did not develop or recommend a strategy that would protect the plaintiff from further equity losses. It is claimed that as a result of the respondents strategies, the plaintiffs incurred significant losses during the market crash.

Question(s) For Expert Witness

1. Do you extensive knowledge in determining a breach in fiduciary duty?

2. Please explain your experience working on investment adviser/fiduciary duty related cases?

Expert Witness Response E-000635

I have extensive knowledge in the duties of financial managers, and am well aware of how these duties may be breached. I have spent more than 25 years in the financial sector and believe I am very well qualified to review this matter. I am FINRA Series 66 and 79 certified. I wonder if the financial managers in this case were consistent in speaking with the investors regarding their strategy? A financial manager should be continously communicating with his clients as to their desired investment strategy (aggressive, conservative, etc). Their clients should always be made aware of the performance of their funds and constantly asked if they are still comfortable with their fund management. It seems that this did not take place, which might very well represent a breach of fiduciary duty. I have reviewed 1 previous financial case with stellar results, and I am confident I could serve as an expert on this matter.