Franciso Cabral Allegedly Recommended an Unsuitable Energy 12 Investment

Francisco Cabral (CRD #: 5257195), a broker registered with Ameriprise Financial Services, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on October 25, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations

On August 27, 2024, an investor alleged that Francisco Cabral recommended unsuitable Energy 12 and mutual fund investments. The investor further alleged forgery in connection with the Energy 12 investment. The allegations include misappropriation and misrepresentation. 

The investor is seeking $450,000. 

Another dispute dated March 9, 2020, also alleges unsuitable recommendations and misrepresentation. The dispute settled for $50,000. 

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Misrepresentation 

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

High Standards of Commercial Honor

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Misappropriation violates this rule. 

Background Information 

Francisco Cabral 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 has registered with two firms: Ameriprise Financial Services (CRD #: 6363) and David Lerner Associates (CRD #: 5397). 

Kurta Law Can Help 

If you worked with Francisco Cabral 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.