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Investor Alleges James Flaherty Recommended and Misrepresented an Unsuitable Variable Annuity

James Flaherty (CRD #: 1445547), a broker registered with Royal Alliance Associates, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on April 28, 2022. If you want to know more about James Flaherty’s conduct as a broker, keep reading.

Investor Dispute

On January 6, 2022, an investor alleged that James Flaherty misrepresented a variable annuity that was unsuitable for the client’s account. This dispute is pending.

Variable annuities are highly complex and often do not suit investors’ needs. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as those that match an investor’s profile. Brokers must tailor their recommendations using the information in investors’ profiles, such as clients’ age, tax status, and other investments.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking FINRA arbitration.

FINRA Rule 2020

Some investments, like variable annuities, come with complex terms and fees, which can be difficult for investors to understand. FINRA Rule 2020 forbids the use of manipulative, deceptive, and otherwise fraudulent tactics to influence investors’ decisions—including misrepresentation of investments and omission of information when explaining investments to clients.

Background Information

James Flaherty has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

James Flaherty is a registered broker in seven states and a registered investment adviser in Iowa.

He has also worked for the following firms:

  • Signator Investors (CRD#:468)
  • Ameritas Investment Corp (CRD#:14869)
  • Financial Network Investment Corporation (CRD#:13572)
  • Fahnestock & Company (CRD#:249)
  • B.C. Christopher Securities Company (CRD#:60)

Kurta Law Can Help

If you worked with James Flaherty and you have concerns about your investments, please contact us today at 877-600-0098 or 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.