Investor Alleges Ausdal Advisor Made Unsuitable Recommendations

by Admin Istrator | December 2, 2021 8:06 pm

Investor Alleges Ausdal Advisor Made Unsuitable Recommendations

Randy Birkinbine (CRD# 2008599[1]) allegedly made recommendations that caused his customers to suffer six-figure losses. According to his BrokerCheck report, accessed on November 23, 2021, Birkinbine is currently affiliated with Ausdal Financial Partners in North Oaks, Minnesota.

Complaints Involve Private Placements

Financial Industry Regulatory Authority (FINRA) records describe two pending customer disputes involving Randy Birkinbine. Filed in 2020 and 2021, the complaints allege he recommended unsuitable investments, over-concentrated an account in illiquid securities, breached his fiduciary duty, failed to conduct adequate due diligence, and failed in his supervisory duties.

In layman’s terms, the complaints allege Birkinbine sold investments that were inappropriate for the investors; that he invested an account too heavily in illiquid securities (i.e. investments that could not be sold quickly if necessary); and that he violated his obligation to act in the customer’s best interests. At issue in the complaints are investments in non-traded REITs and other private placements[2].

To be clear, the allegations in these complaints have not been proven. Both are still pending, with their cumulative alleged damages believed to exceed $200,000.

Prior Complaints Involving Birkinbine Resulted in Customer Settlements

FINRA records also disclose two settled complaints involving Randy Birkinbine. Both filed in 2013, they alleged that he guaranteed 7% per annum appreciation on a variable annuity, and that he recommended investments on which his firm failed to perform due diligence. The complaints settled for a total of more than $60,000.

Customer Filed Denied Complaint About Oil and Gas Investment

In 2018 a customer alleged that Randy Birkinbine failed to fully explain oil and gas private placements[2] that the customer was “unable to access.” The complaint, which alleged damages of $150,000, was denied—a term that means the firm found it unfounded, but not necessarily that it was without merit. Investors whose complaints are denied can still bring them before a FINRA panel, which may issue an award in the investors’ favor.

Randy Birkinbine is Currently Based in North Oaks, Minnesota Randy Birkinbine entered the securities industry 31 years ago, when he joined Lutheran Brotherhood Securities in Minneapolis. He has since associated with FSC Securities Corporation, Invest Financial Corporation, and Workman Securities Corporation. His current registration is with Ausdal Financial Partners, where he has been a broker since 2011 and an investment adviser since 2016. He has securities registrations in eight states, including broker and investment adviser registrations in Minnesota.

Did You Lose Money Investing with Randy Birkinbine?

Endnotes:
  1. 2008599: https://brokercheck.finra.org/individual/summary/2008599
  2. private placements: https://mdf-law.com/private-placements-risks/

Source URL: https://mdf-law.com/ausdal-rany-birkinbin/