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Andrew Costa Embroiled in Allegations of Unsuitable Alternative Investments

Nov 1, 2021 Investor Disputes

Andrew Costa (CRD #: 4847063), a broker registered with Madison Avenue Securities, is involved in multiple disputes alleging unsuitable investment recommendations, according to his BrokerCheck record, accessed on October 26, 2021. Details of the disputes are provided below. 

On September 20, 2021, investors alleged that Andrew Costa recommended unsuitable alternative investments. Alternative investments are always high risk and are generally only suitable for high net worth individuals. Most investors will find these types of investments too risky. 

There is a similar investor dispute that alleges Andrew Costa recommended alternative investments. This dispute is dated February 2, 2021 — earlier the same year. 

Suitable Investments: FINRA Rule 2111

According to FINRA Rule 2111, brokers must only recommend suitable investments that fit their investor’s risk tolerance. Investors state their risk tolerance in their investor profile, which a broker must carefully examine before recommending securities. Investments must also fit the investor’s financial goals, investment time horizon, age, and investing experience. 

Pending Investor Disputes

On September 8, 2020, an investor alleged that Andrew Costa recommended unsuitable investments and was negligent. The investor alleged losses of $100,000; the dispute is pending. 

Settled Investor Disputes 

Three other allegations of unsuitable investments collectively settled for $63,999. 

Andrew Costa Background Information 

Andrew Costa has passed the following exams:

  • Series 66 Uniform Combined State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 General Securities Representative Examination 

He has also registered as a broker in 19 states and Washington D.C. 

He has worked with the following firms: 

  • Madison Avenue Securities (CRD #: 23224)
  • G.F. Investment Services (CRD 132939) 
  • Costa Financial Securities (CRD #: 45039) 

Kurta Law Can Help

If you suffered losses after working with Andrew Costa, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.