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Ervie Houston Allegedly Recommended Unsuitable Investment Strategy

Ervie Houston (CRD #: 5527507), a broker registered with LPL Financial, allegedly recommended an unsuitable investment strategy, according to his BrokerCheck record, accessed on April 28, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Investor Dispute

On February 23, 2023, an investor alleged that Ervie Houston recommended an unsuitable investment strategy involving speculative, high-commission, and illiquid alternative investments. The client seeks $105,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider the information in the investor’s profile, such as their tax status, risk tolerance, and age when recommending investments.

Suitability also applies to investment strategies. For example, overconcentration in a single stock or sector comes with a level of risk that may be unsuitable for many investors’ financial goals.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

Background Information

Ervie Houston has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Ervie Houston is a registered broker in Arizona, California, North Carolina, Oregon, and Washington. He is also a registered investment adviser in Texas and Washington.

He has also worked for the following firms:

  • Cambridge Investment Research Advisors (CRD#:134139)
  • Cambridge Investment Research (CRD#:39543)
  • Cetera Investment Advisers (CRD#:105644)
  • Cetera Investment Services (CRD#:15340)
  • Edward Jones (CRD#:250)

Kurta Law Can Help

If you worked with Ervie Houston and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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. 

 

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