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Benjamin Putman Involved in Unsuitable Investments Allegations

Nov 3, 2021 Investor Disputes

Benjamin Putman (CRD #:2310648), an investment analyst and former registered broker with Independent Financial Group,  is involved in an investor dispute, according to his BrokerCheck record, accessed on October 27, 2021. Keep reading for more details regarding the allegations.

Unsuitable Investment Allegations

On August 6, 2021, an investor alleged that Benjamin Putman recommended an unsuitable investment. The dispute is still pending. The disclosure does not specify the nature of the unsuitable investment, but brokers are required to have a reasonable basis for recommending an investment according to FINRA Rule 2111.

FINRA Rule 2111

Unsuitable investment allegations are some of the most common investor complaints that lead to FINRA arbitration.

FINRA Rule 2111 defines suitability as investments that fit an investor’s risk tolerance, investment time horizon, financial goals, investing experience, and age. Brokers have access to this information through the investor’s profile.

  • Investments can be unsuitable because they are high risk and are likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended period of time and investors may have to pay high fees to cash out.
  • Securities must also be quantitatively suitable, meaning the number of trades should be suitable for the investor and not incur unnecessary commissions and fees.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

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

Benjamin Putman Background Information

Benjamin Putman has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • 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 is a registered investment adviser in California.

Benjamin Putman has worked with the following firms:

  • Independent Financial Group (CRD#: 7717)
  • AIG Financial Advisors (CRD#: 133763)
  • Sentra Securities Corporation (CRD#: 10249)
  • D. Vest Investment Securities (CRD#: 13686)

Kurta Law Can Help

If you worked with Benjamin Putman and you have concerns about your investments, 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.