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Investors Seek $10 Million in Damages in Dispute with Alvery Bartlett

Jul 11, 2022 Unsuitable Investments

Alvery Bartlett (CRD #: 13975), a broker registered with Aegis Capital, allegedly engaged in fraud and misrepresentation, according to his BrokerCheck record, accessed on July 3, 2022. Keep reading if you have questions about Alvery Bartlett’s conduct as a broker.

Pending Dispute

On April 5, 2022, several investors filed an arbitration alleging that Alvery Bartlett recommended and misrepresented an unsuitable investment strategy involving concentrating in illiquid, speculative, and high-commission alternative investments intended to be held for over 15 years (approximately 2001 to 2016). 

Certain clients further allege that Alvery Bartlett engaged in “questionable conduct” regarding a private hedge fund and various business ventures. These clients also allege that the firm failed to supervise Alvery Bartlett and failed to conduct due diligence concerning the investment strategy.

The investors seek $10,000,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information such as investors’ age, risk tolerance, and investment goals.

Brokers must also use this information when recommending investment strategies. The high degree of risk associated with overconcentration makes it a strategy that is unsuitable for most investors.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rules 2020 and 3110

FINRA Rule 2020 bans the use of manipulative, deceptive, and otherwise unethical tactics to influence the purchase or sale of securities. This includes misrepresenting or omitting facts related to investments.

Failure to supervise violates FINRA Rule 3110, which requires firms to create systems of supervision to enforce FINRA and SEC rules. 

Settled Suitability Disputes

On June 8, 2020, multiple investors filed a dispute alleging that, from 2009 to 2016, Alvery Bartlett recommended a series of illiquid, high-commission, and unsuitable investments which resulted in an overconcentration of their portfolio in these investments.

Additionally, the clients alleged that Berthel, Fisher & Company Financial Services was negligent and failed to conduct due diligence concerning United Development Funding. This dispute was settled for $52,500.

A dispute filed on August 13, 2019, alleged that Alvery Bartlett misrepresented unsuitable investments from 2008 to 2012. The investor also alleged that Arete Wealth Management failed to supervise and conduct due diligence regarding Alvery Bartlett’s conduct. This dispute was settled for $325,000.

On January 8, 2018, an investor alleged that Alvery Bartlett made unsuitable investment recommendations between January 2012 and September 2014. The investor sought $3,940,000 and received a $450,000 settlement.

Background Information

Alvery Bartlett has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 5 – Interest Rate Options Examination
  • Series 1 – Registered Representative Examination
  • Series 24 – General Securities Principal Examination

Alvery Bartlett is a registered broker in 19 states and the District of Columbia.

He has also worked for the following firms:

  • Arete Wealth Management (CRD#:44856)
  • Berthel, Fisher & Company Financial Services (CRD#:13609)
  • The Bartlett Fund Management Company (CRD#:27273)
  • Mark Twain Brokerage Services (CRD#:16925)
  • Derand/Pennington/Bass (CRD#:4679)
  • Alvery Bartlett Brokerage (CRD#:13487)
  • Clayton Brokerage Company of ST. Louis (CRD#:6577)

Kurta Law Can Help

If you worked with Alvery Bartlett 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.