Elaine Hartman is the Subject of Excessive Trading Allegations

Elaine Hartman (CRD #: 2070272), a broker registered with Independent Financial Group, is the subject of an investor dispute. This disclosure appears on her BrokerCheck record, accessed on April 16, 2024. Details concerning this dispute are provided below. 

Investor Dispute

On December 14, 2023, an investor alleged that Elaine Hartman breached her fiduciary duty and engaged in excessive trading. The investor further alleged fraud and deceit as well as unfair business practices and unfair competition. 

The investor is seeking $1,618,000. 

Excessive Trading

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must suit an investor’s needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.” 

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC. RIAs are fiduciaries, and fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Background Information 

Elaine Hartman has passed the following exams: 

• 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 36 states. 

Elaine Hartman has registered with the following firms: 

• Independent Financial Group (CRD #: 7717) 
• JHS Capital Advisors (CRD #: 112097) 
• Maguire Investments (CRD #: 18) 

Kurta Law Can Help 

If you have worked with Elaine Hartman and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 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. Do not let securities fraud go unchecked. Start your recovery process today.