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Hillard Rest Named in Allegations Involving Suitability and Misrepresentation

Aug 8, 2022 Unsuitable Investments

Hillard Rest (CRD #: 858840), a broker registered with JRL Capital Corporation, is the subject of two pending disputes, according to his BrokerCheck record, accessed on July 23, 2022. Keep reading to learn more about Hillard Rest’s conduct as a broker.

Investor Disputes

On July 5, 2022, multiple investors alleged that Hillard Rest breached his contract and committed violations related to suitability, fraudulent or negligent misrepresentation or omission of material information, as well as violations of FINRA Rules 2010, IM-2310-2 and 2020. This dispute is pending.

In a dispute filed on June 16, 2022, additional investors alleged that Hillard Rest committed violations relating to suitability, negligence, failure to supervise, and violations of blue sky laws. The investors further alleged that Hillard Rest misrepresented and omitted facts. The investors seek $290,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to investors’ profiles. These profiles describe an investor’s age, tax status, risk tolerance, and other relevant characteristics.

The requirement for suitability extends to investment strategies and overall trading activity. If a broker executes an excessive number of trades, for example, that would violate the requirement for quantitative suitability.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds by pursuing FINRA arbitration.

FINRA Rules 2020, 3110, and 2010

Misrepresenting or omitting material facts violates FINRA Rule 2020, which forbids the use of manipulation, deception, and other fraudulent means of influencing the purchase and sale of securities.

FINRA Rule 3110 requires that firms establish systems of supervision to ensure their compliance with FINRA rules and other regulations.

Violations of these and other FINRA rules frequently qualify as automatic violations of FINRA Rule 2010, which requires members to uphold high standards of commercial honor and just and equitable principles of trade.

What are Blue Sky Laws?

Blue sky laws are state-level regulations that give investors an additional layer of protection, extending federal regulations. For example, many blue sky laws explicitly prohibit the use of fraudulent and deceptive schemes.

What is broker negligence?

Broker negligence comes in many different forms, ranging from the omission of facts to unauthorized trading. Investors who believe their losses were caused by broker negligence may be able to recover their funds by FINRA arbitration.

Background Information

Hillard Rest 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 24 – General Securities Principal Examination

Hillard Rest is a registered broker in Arizona, California, and Nevada.

He has also worked for the following firms:

  • Samuels Chase & Company (CRD#:36699)
  • National Planning Corporation (CRD#:29604)
  • Samuels Chase & Company (CRD#:36699)
  • Painewebber (CRD#:8174)
  • Vanguard Capital (CRD#:22081)
  • Drake Capital Securities (CRD#:16227)
  • Sutro & Company (CRD#:801)
  • Dean Witter Reynolds (CRD#:7556)

Kurta Law Can Help

If you worked with Hillard Rest 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.