Buddy Clark Allegedly Conducted Excessive and Unauthorized Trading
Buddy Clark (CRD #: 1431762), a broker registered with Cadaret, Grant, and Company, allegedly executed an excessive number of trades in a client’s account, according to his BrokerCheck record, accessed on August 6, 2022. If you have questions about s conduct as his broker, keep reading.
Investor Disputes
On May 25, 2022, an investor named Buddy Clark in a dispute alleging excessive trading and unsuitable investments made between 2008 and 2021. The client seeks $815,157 in this pending dispute.
Another dispute, filed on July 5, 2016, made allegations involving unsuitable investments and unauthorized trading from 2012-2016. The client sought $300,000 in damages and received a settlement of $75,000.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their age, tax status, and other investments.
Trading activity must also meet the requirement for quantitative suitability, meaning that brokers cannot execute an excessive number of trades. Excessive trading, also known as churning, generates commissions and fees that eat into investors’ returns.
Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.
FINRA Rule 3260
Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts. Brokers must receive approval from their client and their firm before conducting their own trading.
Background Information
Buddy Clark 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 3 – National Commodity Futures Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)
Buddy Clark is a registered broker in 9 states and the District of Columbia.
He has also worked for the following firms:
- Petersen Investments (CRD#:38537)
- Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
- Painewebber (CRD#:8174)
- Smith Barney, Harris Upham & Company (CRD#:7059)
- Dean Witter Reynolds (CRD#:7556)
- Nathan & Lewis Securities (CRD#:8503)
Kurta Law Can Help
If you worked with Buddy Clark 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 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.