Angel Ferrer Embroiled in a $56 Million Investor Dispute

Angel Ferrer (CRD #: 4220368), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is the subject of a multi-million dollar investor dispute. This disclosure appears on his BrokerCheck record, accessed on October 24, 2023. Details are provided below. 

On August 24, 2023, investors alleged Angel Ferrer breached his fiduciary duty, engaged in negligence, engaged in fraud, and breached his contract. They further alleged a failure to provide advice on a concentrated position and an alleged recommendation to use a line of credit to further concentrate their assets. 

The investor is seeking $56,000,000. 

FINRA Rule 2111 – Unsuitable Investments and Overconcentration 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. This rule also prohibits overconcentration, as placing too much of a portfolio in a single sector exposes the investor to unnecessary risk. 

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC. RIAs are fiduciaries, and fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Background Information 

Angel Ferrer has passed the following exams: 

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

He is a registered broker in 10 states and D.C. He is also a registered investment adviser in Florida and Texas. 

During his 20 years of experience, he has registered with six firms: 

• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
• Citi Private Advisory (CRD #: 153777) 
• CitiGroup Global Markets (CRD #: 7059) 
• Wells Fargo Advisors (CRD #: 19616) 
• Wachovia Securities (CRD #: 19616) 
• Banc of America Investment Services (CRD #: 16361) 
• Donaldson, Lufkin & Jenrette Securities Corporation (CRD #: 7560) 

Kurta Law Can Help

If you worked with Angel Ferrer and 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 that 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.