Jason Cook Allegedly Misrepresented Unsuitable Investments

Jason Cook (CRD #: 4349388), a broker registered with Berthel, Fisher & Company Financial Services, allegedly misrepresented investments, according to his BrokerCheck record, accessed on June 13, 2023. Investors may have also engaged his services through BFC Planning. Read on to learn more about his alleged conduct as a broker.

Pending Dispute

On May 10, 2023, an investor alleged that Jason Cook misrepresented unsuitable investments purchased from 2013-2017. The client further alleged that Berthel, Fisher & Company Financial Services failed to supervise his activities and failed to conduct due diligence on these investments. The dispute settled for $125,000. 

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent methods to influence investors’ decisions. Misrepresenting an investment’s limitations, fees, or other features violates this rule.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information such as investors’ risk tolerance, tax status, and investment goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to maintain their compliance with securities regulations. Among other things, firms must ensure that supervisory personnel have the training or experience necessary for their role.

Settled Disputes

A dispute filed on December 30, 2021, alleged that Jason Cook misrepresented non-traditional alternative investments (specifically non-traded real estate investment trusts and limited partnerships) from 2011 to 2020. The clients alleged that these investments were unsuitable and that they were “significantly” concentrated in them.

Further, these clients alleged that the firm failed to conduct due diligence, failed to supervise, and failed to appropriately train Jason Cook. These investors sought $300,000 in damages and received a settlement of $92,500.

What are Real Estate Investment Trusts?

Real estate investment trusts (REITs) allow investors to generate returns from a real estate portfolio without taking on the cost and responsibility of managing the properties. However, REITs tend to be illiquid, making them unsuitable for many investors.

Background Information

Jason Cook has passed the following exams:

• 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

Jason Cook is a registered broker in six states and a registered investment adviser in North Carolina.

He has also worked for Raymond James Financial Services (CRD#:6694) and Princor Financial Services (CRD#:1137).

Kurta Law Can Help

If you worked with Jason Cook 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.