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Investors Seek $20 Million in Damages in Disputes with Alvery Bartlett

Alvery Bartlett (CRD #: 13975), a broker registered with Aegis Capital, allegedly engaged in fraud and misrepresentation, according to his BrokerCheck record, accessed on April 5, 2023. Keep reading if you have questions about Alvery Bartlett’s alleged conduct as a broker.

Pending Disputes

On February 23, 2023, several investors filed a civil suit alleging that Alvery Bartlett and his firm engaged in the following violations with regard to certain alternative investments:

These clients further alleged that they were sold unsuitable investments from 2006-2015 that the firm failed to conduct due diligence on. The investors seek $10 million in damages in this pending lawsuit.

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” with regard to 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 million in damages in this pending dispute.

FINRA Rule 2111 and Regulation Best Interest

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.

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 Rules 2020 and 3110

FINRA Rule 2020 bans the use of manipulative, deceptive, and otherwise fraudulent 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.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence, including unsuitable investment recommendations, excessive trading, and failure to supervise other brokers.

Investors who feel their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

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
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 5 – Interest Rate Options Examination
  • Series 1 – Registered Representative Examination
  • Series 4 – Registered Options Principal 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, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email

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.