Franklin Reynolds Allegedly Made Unsuitable Investment Recommendations

Franklin Reynolds (CRD #: 1366983), a broker registered with The Strategic Financial Alliance, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on June 29, 2023. Investors may have also worked with him through Frank Reynolds & Company. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

On April 3, 2023, an investor alleged that Franklin Reynolds made unsuitable investment recommendations and that his firm failed to supervise these recommendations. The client seeks $83,350 in this pending dispute.

In a dispute filed on June 19, 2018, multiple investors alleged that Franklin Reynolds recommended an illiquid and aggressive direct participation program (DPP) that was unsuitable for their investment goals and low-moderate risk tolerance.

They further alleged that he misrepresented and omitted material information about the nature of the investment, and misrepresented their qualification as accredited investors, as defined in Rule 501 of Regulation D. This misconduct allegedly took place between April 2010 and April 2012.

The clients sought $95,000 in damages and received a settlement of $45,000.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes characteristics such as their risk tolerance, age, and tax status.

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulation, deception, and other fraudulent means of influencing investors’ decisions. The misrepresentation or omission of material facts violates this rule.

Regulation D

Regulation D of the Securities Act of 1933 describes the exemptions from the Act’s securities registration requirements.

Rule 501 defines the terms used in Regulation D, including “accredited investor.” Financial entities such as banks and broker-dealers qualify as accredited investors, as well as individuals who meet certain net worth or income requirements.

Background Information

Franklin Reynolds 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
• Series 24 – General Securities Principal Examination

Franklin Reynolds is a registered broker in 27 states and a registered investment adviser in Florida and Texas.

He has also worked for the following firms:

• G. A. Repple & Company (CRD#:17486)
• SunAmerica Securities (CRD#:20068)
• IFG Network Securities (CRD#:19948)
• Planned Investments (CRD#:5066)
• American Express Financial Advisors (CRD#:6363)
• IDS Financial Services (CRD#:6320)

Kurta Law Can Help

If you worked with Franklin Reynolds 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.