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Franklin Lara Embroiled in a Suitability Dispute

Feb 16, 2022 Investor Disputes

Franklin Lara (CRD #:5657622), a broker and investment advisor registered with   Independent Financial Group, is involved in an unsuitability dispute according to his BrokerCheck record, accessed on February 2, 2022. 

According to the allegations filed on October 6, 2021, Franklin Lara recommended unsuitable investments which were not in line with his client’s stated objectives. The investor is seeking $469,130.00一the dispute is still pending.

What is a Suitable Investment?

A financial advisor who recommends a security or investment is subject to ethical standards enforced by FINRA. One such standard is known as the suitability rule, which is described in FINRA Rule 2111. 

FINRA Rule 2111. requires registered financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy suits their client's needs.

According to FINRA, the three prongs of a suitability determination are 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks and rewards.
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance. 
  3. Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive. Excessive transactions run the risk of incurring too many fees and negating any returns. 

If you've lost money due to a financial advisor's bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.

Tax Liens

Between 2015 and 2018, Franklin Lara was the subject of two tax liens which totaled $38,517.66.

Background Information

Franklin Lara 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
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination

Franklin Lara Is a registered broker in four states. He is also a registered investment advisor in California and Texas.

Besides Independent Financial Group, Franklin Lara has also worked with National Planning Corporation (CRD#:29604).

Kurta Law Can Help

If you have worked with Franklin Lara 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.