Alvaro Martinez Allegedly Misrepresented an Unsuitable Oil and Gas Limited Partnership

Alvaro Martinez (CRD #: 4286086), a broker formerly registered with OneAmerica Securities, allegedly made an unsuitable investment recommendation, according to his BrokerCheck record, accessed on November 12, 2022. If you have questions about his conduct as a broker, read on.

Investor Dispute

On August 31, 2022, several investors filed a dispute alleging that Alvaro Martinez made an unsuitable recommendation of an oil and gas limited partnership, and made material misrepresentations and omissions in relation to this recommendation.

The client seeks $96,500 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

• High-risk investments may be unsuitable due to their likelihood of losing money.
• Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
• Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
• Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulation, deception, and other unethical tactics to influence the purchase and sale of securities. This includes the misrepresentation or omission of material facts relating to investments.

Background Information

Alvaro Martinez has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

He has also worked for the following firms:

• OneAmerica Securities (CRD#:4173)
• Park Avenue Securities (CRD#:46173)
• New England Securities (CRD#:615)
• Waddell & Reed (CRD#:866)
• Allstate Financial Services (CRD#:18272)
• Banc One Securities Corporation (CRD#:16999)
• MML Investors Services (CRD#:10409)
• New England Securities (CRD#:615)

Kurta Law Can Help

If you worked with Alvaro Martinez 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.