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Did Craig Cohen Recommend Unsuitable Investments?

Mar 11, 2022 Unsuitable Investments

Craig Cohen (CRD #: 4986883), a broker registered with J.P. Morgan Securities, was involved in an investor dispute, according to his BrokerCheck record, accessed on February 20, 2022.

According to the allegations filed on December 1, 2021, Craig Cohen gave poor advice regarding options transactions that resulted in investment losses. The investor sought $680,000, but the firm denied the dispute. Investors should know that firms can deny disputes without any external review and that they can still pursue FINRA arbitration and recover their losses following a denial.

What is a Suitable Investment?

FINRA defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. 

FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance. 
  3. Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns. 

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

Background Information

Craig Cohen has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Craig Cohen is a registered broker in 50 states, Washington DC, Puerto Rico and the Virgin Islands. 

Besides  J.P. Morgan Securities, Craig Cohen has also worked with the following firms:

  • Natwest Markets Securities (CRD#:11707)
  • Nomura Securities International (CRD#:4297)
  • Barclays Capital (CRD#:19714)
  • Lehman Brothers (CRD#:7506)

Kurta Law Can Help

If you have worked with Craig Cohen 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.