Charles Churchill Facing a Dispute Regarding Mutual Funds and an Annuity

Charles Churchill (CRD #: 1659399), a broker registered with CitiGroup Global Markets, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on August 22, 2023. Keep reading if you have questions about his conduct as a broker. 

On June 14, 2023, an investor alleged Charles Churchill breached his fiduciary duties regarding mutual funds and an annuity. He also allegedly made unsuitable recommendations and engaged in negligence. The investor is seeking $113,405. 

Charles Churchill also has five tax liens on his record, dating back to 2012. 

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC, and RIAs are fiduciaries. Fiduciaries are required to act in their client’s best interests. (Click here to learn more about the differences between brokers and Registered Investment Advisers.) 

What is a Mutual Fund? 

A mutual fund is a portfolio of investments that allows investors to pool their wealth. They can be passively or actively managed. Brokers may earn a large commission from these funds, making them frequent objects of fraudulent trading practices. Investors should also note that brokers are required to notify their investors if they are entitled to breakpoint discounts when they purchase shares of a mutual fund. Failure to do so could be grounds for an investor dispute and FINRA arbitration. 

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status

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

Background Information 

Charles Churchill 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 10 General Securities Sales Supervisor – General Module Examination 
• Series 24 General Securities Principal Examination 

He is a registered broker in 17 states. He is also a registered investment adviser in Connecticut, Florida, New Jersey, and New York. 

Charles Churchill has registered with the following firms: 

• CitiGroup Global Markets (CRD #: 7059) 
• HSBC Securities (USAA) Inc. (CRD #: 19585) 
• FCG Wealth Management (CRD #: 40633)
• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
• UBS Financial Services (CRD #: 8174) 
• Chase Investment Services Corp. (CRD #: 25574) 
• BHCM Inc. (CRD #: 34637) 
• CitiCorp Investment Services (CRD #: 23988) 
• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 

Kurta Law Can Help

If you worked with Charles Churchill 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.