Bud Arnett Allegedly Made Unsuitable Use of Margin

Bud Arnett (CRD #: 1080126), a previously registered broker with Prospera, is facing allegations that he made unsuitable use of margin in an investor’s account. This is according to his BrokerCheck record, accessed on August 18, 2023. For more detail, keep reading. 

On June 20, 2023, an investor alleged that Bud Arnett made unsuitable use of margin in her account from 2012 through 2023. The investor is seeking $186,000 but the dispute was denied by the firm. Investors should know, however, that firms can deny disputes without any external review. Following a denial, investors may still be able to recover their funds via FINRA arbitration.

What is Margin Investing? 

Investing on margin is when an investor opens a margin account and borrows money from a brokerage firm in order to purchase more securities. Using borrowed money is called “leverage” and it increases the risk that the investor will lose money. Margin accounts may come with interest charges, significant broker fees, and the risk of a margin call. 

Margin calls happen when the broker needs more money in the account in order to cover the minimum margin requirement. If the investor does not make the required deposit, the broker may liquidate securities in the investor’s account in order to cover the minimum. 

Margin accounts are often unsuitable and investors should be made aware of their risks before purchasing securities on margin. 

Background Information 

Bud Arnett has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• Series 99TO Operations Professional Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 8 General Securities Sales Supervisor Examination (Options Module & General Module) 

Bud Arnett has passed the following exams: 

• Prospera Financial Services (CRD #: 10740)
• UBS Financial Services (CRD #: 8174) 
• Dain Rauscher Incorporated (CRD #: 31194) 
• Dain Rauscher Incorporated (CRD #: 7600) 
• Rauscher Pierce Refsnes (CRD #: 6663) 
• Principal Financial Securities (CRD #: 260) 

Kurta Law Can Help

If you worked with Bud Arnett 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 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.