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Claude Petty is Involved in an Investor Dispute Alleging Misrepresentation

Feb 16, 2022 Misrepresentation

Claude Petty (CRD #:2225628), a broker and investment advisor registered with UBS Financial Services, is involved in an investor dispute, according to his BrokerCheck record accessed on February 3, 2022. 

According to the allegations filed on October 13, 2021, Claude Petty failed to properly inform the client of the consequences and nature of the obligations if she elected to withdraw money from her investments. The client further alleges Claude Petty breached his fiduciary duties by failing to properly inform the client of all her investment options with regards to the management of the investments and misrepresented the documents.

The damage amount requested was $95,001.19; however, the firm denied the dispute, but investors should know that firms can deny disputes without any external review. It is also important for investors to know that they can still pursue FINRA arbitration and recover their losses following a denial.

Misrepresentation is a Breach of Fiduciary Duty

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest. 

Did you know that any of the following can be considered misrepresentation or omission?

  • Inadequate due diligence concerning security offerings
  • Failure to disclose all material risks
  • Failure to disclose all transaction costs
  • Unrealistic presumptions for investment projections
  • Inaccurate investment performance calculation

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. 

Losses that can be attributed to a stockbroker's material misrepresentations of facts may result in a viable securities arbitration claim for damages.

Background Information

Claude Petty has passed the following exams:

  • Series 66 - Uniform Combined State 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

Claude Petty is a registered broker in 50 states, Washington D.C., Puerto Rico, and the Virgin Islands. He is also a registered investment advisor in Texas and North Carolina.

Besides UBS Financial Services, Claude Petty has also worked with the following firms:

  • Banc Of America Investment Services (CRD#:16361)
  • Citicorp Investment Services (CRD#:23988)
  • CAL Fed Investments (CRD#:19631)
  • National Planning Corporation (CRD#:29604)
  • Pruco Securities Corporation (CRD#:5685)
  • CUNA Brokerage Services (CRD#:13941)
  • The Prudential Insurance Company Of America (CRD#:680)

Kurta Law Can Help

If you have worked with Claude Petty and 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. Please reach out if you have any questions about what steps to take next to recover your investment losses.