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San Jose Rep David Bibo Allegedly Caused 7-Figure REIT Losses
David Bibo (CRD# 2602436), a representative of Western International Securities, is the subject of pending and denied customer complaints. According to the Financial Industry Regulatory Authority, one investor alleges the San Jose stockbroker and investment adviser caused $1.5 million in losses.
The two pending complaints against David Bibo were filed in 2019 and 2021, per his BrokerCheck report.The complaint filed in 2020 alleges that as a representative of Western International Securities, he made misrepresentations and unsuitable recommendations relating to an investment in a real estate investment trust, or REIT. The pending complaint alleges damages of $300,000. The 2019 complaint similarly alleges that as a representative of Western International Securities, he recommended an unsuitable real estate investment trust. This pending complaint alleges damages of $1,500,000.
Per FINRA rules, brokers like David Bibo may recommend only investments and investment strategies that meet a standard called suitability for their clients. The suitability standard, which is outlined by FINRA Rule 2111, describes the need for brokers to “have a reasonable basis to believe that a recommended transaction or investment strategy” comports with a customer’s investment profile, which includes their age, financial situation, liquidity needs, risk tolerance, and other concerns. They must have a reasonable basis to believe the recommendation is suitable for at least some investors and that it is reasonable for the specific customer. In cases involving a series of transactions where the broker has actual or de facto control over the customer’s account, they must also have a reasonable basis to believe that the series of transactions, “even if suitable when viewed in isolation, is not excessive and unsuitable for the customer.” More information on the suitability standard is available via FINRA.
David Bibo’s BrokerCheck report also describes two denied complaints against him, both filed in 2019. Both complaints concern “the reasonableness” of an investment in a direct participation program and/or limited partnership interests, alleging damages of $50,000. Both were denied by the firm.
According to the Financial Industry Regulatory Authority, David Bibo holds 26 years of securities industry experience. He is a representative of Western International Securities, based in the firm’s branch office in San Jose, California, where he has been registered since 1997. His registration history includes MyClearing.com in (Los Angeles, California), Interfirst Capital Corporation (Los Angeles, California), and Merrill Lynch (New York, New York). He has passed the Uniform Investment Adviser Law Examination (Series 65), the Uniform Securities Agent State Law Examination (Series 63), the Securities Industry Essentials Examination (SIE), the General Securities Representative Examination (Series 7), and the General Securities Principal Examination (Series 24). He holds seven state licenses, in Arizona, California, Florida, Nevada, North Dakota, Oregon, and Washington. (Information current as of November 14, 2021.)