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Elizabeth Teifer Faces Second Investor Dispute

Nov 15, 2021 Investor Disputes

Elizabeth Teifer (CRD #:6009776), a registered broker with Herbert J. Sims & Co, is involved in her second investor dispute, according to her BrokerCheck record, accessed on November 3, 2021. She is also a registered investment advisor with Herbert J. Sims Capital Management.

Investor Allegations

On August 27, 2021, an investor filed a dispute against Elizabeth Teifer, alleging unsuitability, misrepresentation/omission, and breach of fiduciary duty. Although the disclosure does not specify the nature of the investment, Elizabeth Teifer’s alleged misconduct would constitute a violation of FINRA Rules 2020, 2011, and 2010.

Allegations are a Violation of FINRA Rules 2020, 2011, and 2010

FINRA Rule 2020 - Misrepresentation

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations of fact to induce an investor in connection with the sale or purchase of an investment. Misrepresentation also violates The Securities Act of 1933, which prohibits deceit, misrepresentation, and other fraud in the sale of securities. 

FINRA Rule 2111 - Suitability

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. 

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that 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.

Brokers are required to have a reasonable basis for recommending an investment according to FINRA Rule 2111. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Elizabeth Teifer's alleged conduct is also unethical and violates FINRA Rule 2010, which states that brokers must uphold the highest standards of commercial honor.

The investor is seeking $50,000; the case is still pending.

Other Investment Dispute

On March 26, 2018, Elizabeth Teifer was also involved in another investor dispute. According to the investor, Elizabeth Teifer allegedly failed to execute liquidation orders. The investor sought $11,149.86. 

The firm denied the dispute but investors should know that firms can deny disputes without any external review. Investors should also know that they can still pursue FINRA arbitration and recover their losses following a denial.

Elizabeth Teifer Background Information

Elizabeth Teifer 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

Elizabeth Teifer is a registered broker in 13 states. She is a registered investment advisor in Connecticut and New Jersey.

Other than Herbert J. Sims & Co, Elizabeth Teifer has worked with the following firms:

  • David Lerner Associates (CRD#:5397)

Kurta Law Can Help

If you have worked with Elizabeth Teifer 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 contact us today if you would like us to evaluate your potential case.