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Darryl Ferguson Embroiled in an Dispute Alleging an Unsuitable REIT Recommendation

Apr 1, 2022 REITs

Darryl Ferguson (CRD #: 4104760), a broker and investment advisor registered with LPL Financial, is involved in two pending investor disputes, according to his BrokerCheck record, accessed on March 26, 2022.

Investor Allegations

On December 22, 2021, Darryl Ferguson was named in an investor dispute alleging an unsuitable non-traded REIT recommendation. The investor is seeking $500,000. 

What are REITs?

A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. By putting their money into a REIT, investors can own a share of those properties. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments.

If you lost money in unsuitable REITs, you might have a viable claim against your broker, and you should not hesitate to contact the securities attorneys of Kurta Law. 

Unsuitable Investments

FINRA Rule 2111 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. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information

Darryl Ferguson 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 7 - General Securities Representative Examination

He is a registered broker in nine states and is a registered investment advisor in Illinois. 

Besides LPL Financial,  Darryl Ferguson has also worked with Cetera Advisor Networks (CRD#:13572).

Kurta Law Can Help

If you have worked with Darryl Ferguson 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.