Fred Farhoumand Subject of a $100,000 Investor Dispute

Fred Farhoumand (CRD #: 727764), a broker registered with Next Financial, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on November 1, 2023. Investors may have also engaged his services through One Resource Financial Consultants. 

On August 21, 2023, Fred Farhoumand an investor alleged that Fred Farhoumand misrepresented the risks associated with two Business Development Companies. They further alleged that the investments were unsuitable. The investor is seeking $100,000. 

Misrepresentation 

FINRA Rule 2020 forbids 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.

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. This rule also prohibits overconcentration, as placing too much of a portfolio in a single sector exposes the investor to unnecessary risk. 

Previous Investor Disputes 

Investors should know that this is the 13th investor dispute on his record. The two most recent disputes allege six-figure losses. 

On November 23, 2020, investors alleged Fred Farhoumand misrepresented the risks associated with two business development companies. The investor sought $326,000 but the dispute was denied. Investors should know, however, that firms can deny disputes without any external review. Following a denial, investors may still be able to recover their funds via FINRA arbitration.

On January 30, 2017, Fred Farhoumand allegedly either misstated the features of a variable annuity or failed to understand them. The investor sought $242,755 but the dispute settled for $185,000. 

Background Information 

Fred Farhoumand 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 22 Direct Participation Programs Representative Examination 
• Series 6 Investment Products/Variable Contracts Representative Examination 
• Series 26 Investment Company Products/Variable Contracts Principal Examination 

He is a registered broker in 28 states and D.C. He is a registered investment adviser in Indiana, Louisiana, and Texas. 

During his 42 years of experience, he has registered with 10 firms: 

• Next Financial Group (CRD #: 46214) 
• H. Beck (CRD #: 1763) 
• Gunnallen Financial (CRD #: 17609) 
• SII Investments (CRD #: 2225) 
• Atlas Capital Management Corp (CRD #: 106107) 
• AFH Financial Consortium (CRD #: 37454) 
• Washington Square Securities (CRD #: 2882) 
• Reliastar Financial Marketing (CRD #: 4234) 
• John Hancock Distributors (CRD #: 468) 
• John Hancock Mutual Life Insurance Company (CRD #: 5181) 

Kurta Law Can Help

If you worked with Fred Farhoumand and 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 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.