FINRA fined, suspended and ordered former Edward Jones broker Dalas Lee Gundersen of Willows, California to pay disgorgement for ill-gotten commissions related to an unsuitable investment recommendation and excess concentration in an intermediate municipal bond fund.
According to the findings, two investors at Edward Jones approached Gundersen seeking higher yielding investment options in oil and gas ventures.
The findings state that instead of investing in oil and gas, Gundersen recommended shares in two mutual funds, the Invest Floating Rate Fund (AFRAX) and Invesco Intermediate Term Municipal Income Fund (VKLMX), which the investors purchased shortly thereafter.
Investigators determined that Gundersen then inappropriately recommended the investors pull out the money invested in AFRAX and pour approximately $1.26 million into VKLMX, representing 80% of their estimated net worth. The report states those sales generated $7,556 in commissions, $2,837 of which went to Gundersen.
After complaining to Edward Jones in July 2013 that their VKLMX investment was declining in value, and selling the fund for a $45,775 + $11,900 deferred sales charge loss, the investors settled their complaint with Edward Jones for $45,803.
According to Gundersen's BrokerCheck report, a client in 2012 settled a complaint with Edward Jones in which he alleged Gundersen executed unauthorized trades, generating commission charges of $2,639.98. As part of the settlement, Edward Jones reimbursed those fees.
If you have invested with Dalas Lee Gundersen or with any broker or financial adviser whose unsuitable recommendations to over-concentrate or engage in any other excessive purchasing, selling or trading activity has generated unreasonable commissions, sales fees or any other unnecessary charges that have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.