Alexander Callahan Allegedly Failed to Act in Client’s Best Interest

Alexander Callahan (CRD #: 2754040), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on July 19, 2023. If you have questions about his alleged conduct as a broker, keep reading.

Investor Dispute

On May 30, 2023, an investor alleged that Alexander Callahan made unsuitable investment recommendations, engaged in misrepresentation, and failed to act in their best interest with regard to investment strategies.

This misconduct allegedly occurred between September 2021 and March 2023. This dispute is currently pending.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe investor characteristics, such as their tax status, risk tolerance, and financial goals.

Investment strategies must also serve investors’ goals. For example, overconcentration in a particular sector or stock is often an unsuitable investment strategy due to the high degree of risk.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. Misrepresenting an investment’s requirements, risks, limitations, or other relevant information violates this rule.

Background Information

Alexander Callahan has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Alexander Callahan is a registered broker in 23 states and the District of Columbia. He is also a registered investment adviser in Texas and Washington.

He has also worked for the following firms:

• UBS Financial Services (CRD#:8174)
• Piper Jaffray & Company (CRD#:665)
• GT Global (CRD#:19587)

Kurta Law Can Help

If you worked with Alexander Callahan and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.