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Caroline Ellis: Investor Alleges Half-Million Dollar Loss

Caroline Ellis (CRD #: 7063869), a registered broker with Charles Schwab & Co, is facing an investor dispute, according to her BrokerCheck record, accessed on October 27, 2021. The investor alleges that Caroline Ellis failed to execute his trade at the time they requested. If you have any questions about Caroline Ellis’s conduct as a broker, keep reading.

Investor Allegations

On September 3, 2021, an investor filed a dispute against Caroline Ellis. According to the investor, Caroline Ellis, who was acting on behalf of Charles Schwab & Co, allegedly failed to execute his online trade immediately.

The investor further alleges that Caroline Ellis assured him that Charles Schwab & Co would correct the execution; however, no correction was made, even after contacting other representatives at Charles Schwab & Co. A broker is required by FINRA to find the “most favorable terms reasonably available under the circumstances for a customer’s transaction.” 

FINRA Rule 5310 (“Best Execution and Interpositioning”)

FINRA Rule 5310 states that “a member [firm] must make every effort to execute a marketable customer order that it receives fully and promptly.” Brokers must also follow best execution procedures, which must be “reasonably designed to identify the best practices and obtain best execution” for customers while taking into context “prevailing market conditions.”

FINRA recommends that firms consider the following factors when conducting reviews of the quality of their order executions:

  • Opportunities to improve the price
  • Instances in which customers received a worse price at execution than the best available quotes
  • The probability of the execution of limit orders
  • How long it takes to execute an order
  • The magnitude of the execution
  • The costs associated with the transaction
  • The needs and expectations of customers
  • Careful assessment of the impact on execution quality as a result of receiving payments for order flow
  • Whether internalization or payment for order flow arrangements exist

The investor is seeking $511,181.69; the dispute is still pending.

Caroline Ellis Background Information

Caroline Ellis has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

She is a registered broker in 50 states and Washington D.C.

She has not worked with any other firm besides Charles Schwab & Co. (CRD #: 5393).

Kurta Law Can Help

If you worked with Caroline Ellis and you have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.