Schwartz Law is currently investigating claims against Mario Payne (CRD# 5445757)andPlanning Solutions International LLC dbaToams Financial(CRD# 300043). We are seeking information from anyone who has had dealings with Mr. Payne,or who had similar investment-related losses when dealing with Mr. Payneregarding the sale of complex structured notes. Based on our preliminary investigation, it appears that Mr. Payne made materials misrepresentations to clients about complex structured notes at the point of sale and made further materials misrepresentations about the structured notes when they did not perform as anticipated.
What is a Structured Note?
A structured note is a debt obligation that also contains a derivative component that adjusts the security’s risk-return profile. The return performance of a structured note will track both the underlying debt obligation and the derivative embedded within it. This type of note is a hybrid security that attempts to change its profile by including additional modifying structures which increase the bond’s potential return or loss. The performance of a structured note is linked to the return on an underlying asset, group of assets, or index. Structured notes have two underlying pieces: a bond component and a derivative component. The bond portion of the note takes up most of the investment and provides some principal protection. The rest of the investment not allocated to the bond is used to purchase a derivative product and can provide high levels of risk to potential investors. The derivative portion is used to provide access to certain asset classes.Structured notes are extremely complicated, have the potential to suffer a loss of the principal investment, are hard to liquidate and sell on the secondary market and have a much higher risk of default when compared to traditional notes or debt obligations.
Who is Mario Payne?
Mario Joseph Payne of Jacksonville Florida is the owner and operator of Planning Solutions International LLC dbaToams Financial. Toams Financialis a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”), which is organized as acorporation under the laws of the State of Florida. Toams Financial was founded in February 2013 by Mr. Payne. Mr. Payne is a Certified Financial Planner and holds licenses and designations including the Series 6, 7 and 24, Florida Life, Health and Variable Annuity, CFP® and AAMS® certifications.
Prior to working for Toams Financial, Mr. Payne was a stockbroker employed by Raymond James Financial Services Inc.. In May of 2018, a customer initiated an investment related complaint against Mr. Payne where the customer sought $20,000 in damages supported by allegations that between November 10, 2017 and February 8, 2018, the customer was placed in stocks that were both misrepresented and inappropriate for the customer’s financial circumstances.Raymond James denied the customer’s claim, and without more information, asserted that the claim may be without merit.
In March of 2009, there was another complaint against Mr. Payne where a customer filed an investment related complaint regarding Payne’s activities. This customer requested damages estimated to exceed $5,000 based upon accusations of Mr. Payne’s misconduct while at Edward Jones including: unauthorized trading of unit investment trust investments in the customer’s account; misrepresentations concerning investment returns; trades having been affected in the customer’s account on an unsuitable basis; and the failure to provide the customer a prospectus at the time that the customer’s investments was selected. This claim was also denied, and without more information, may be without merit.
Investigation of Mario Payne of Toams Financial
If you have suffered losses as a result of Mario Payne, or Toams Financial, we would like to hear from you. We are currently investigating claims by a client who was sold nearly two dozen complex structured notes, which were overconcentrated in the client’s account. We would like to hear from you if you have had a similar experience given that the information you have may assist us in the adjudication of claims against Mario Payne and/orToams Financial. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at [email protected].