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Allen Wilson Allegedly Recommended Unsuitable Investments

Jun 6, 2022 Unsuitable Investments

Allen Wilson (CRD #: 2420229), a broker registered with Wells Fargo Clearing Services, is involved in allegations of unsuitable investment recommendations, according to his BrokerCheck record, accessed on May 28, 2022. Keep reading if you have questions about Allen Wilson’s conduct as a broker.

Alleged Unsuitable Investment Recommendations

On February 17, 2022, an investor filed a dispute alleging Allen Wilson recommended unsuitable products between August 29, 2012, and February 17, 2022. The client seeks $100,422 in this pending dispute.

Three disputes filed in 2018 alleged that Allen Wilson recommended unsuitable investments, over-concentrated a client's portfolio in unsuitable products, and exercised discretion in a client's account without approval. The clients allege these violations happened from 2012-2018. These disputes were settled for a total of $267,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ profiles when recommending investments. Investors’ profiles describe characteristics such as their age, tax status, and other investments.

Brokers must also ensure that investment strategies match their clients’ profiles. Over-concentration comes with a high degree of risk that is unsuitable for most investors.

Investors who rely on brokers for investment and strategy recommendations can pursue FINRA arbitration to recover their losses.

FINRA Rule 3260

FINRA Rule 3260 restricts brokers from exercising their trading discretion outside pre-approved discretionary accounts, authorized by both the client and firm.

Background Information

Allen Wilson has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Allen Wilson is a registered broker in 23 states and Puerto Rico. He is also a registered investment adviser in New Jersey and Texas.

He has also worked for the following firms:

  • Stifel, Nicolaus & Company (CRD#:793)
  • Ryan Beck & Company (CRD#:3248)
  • J. B. Hanauer & Company (CRD#:6958)
  • Chatfield Dean & Company (CRD#:14714)

Kurta Law Can Help

If you worked with Allen Wilson and you have concerns about your investments, please contact us today at 877-600-0098 or 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.