Jason Garofalo Involved in Disputes Alleging Unsuitable REIT Recommendations
Jason Garofalo (CRD #: 3008935), a broker and investment advisor registered with Ameriprise Financial Services, is facing a pending dispute alleging unsuitable investment recommendations, according to his BrokerCheck record, accessed on December 29, 2021.
On November 5, 2021, an investor alleged that Jason Garofalo recommended unsuitable investments including Inventrust and Hospitality Investor's Trust REITs. The investor is seeking $150,000; the dispute is pending.
- InvenTrust Properties is a real estate investment trust that invests in shopping malls. The company owns and manages 65 properties comprising 10.8 million square feet.
- Hospitality Investors Trust, Inc. (“HIT REIT”) is a real estate investment trust (“REIT”) that owns a portfolio of hotel properties.
What Are REITs?
A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. A REIT could contain anything from office buildings and other commercial units to apartment buildings or healthcare facilities. By putting their money into a REIT, investors can own a share of those properties. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments.
If you lost money in unsuitable REITs, you might have a viable claim against your broker, and you should not hesitate to contact the securities attorneys of Kurta Law.
This is not Jason Garofalo’s first investor dispute alleging unsuitable REITs. On September 12, 2012, Jason Garofalo was involved in a similar dispute alleging unsuitable investment recommendations, negligence, misrepresentations and omissions, violations of the Nevada Securities Act and Regulations, violations of the FINRA Conduct Rules and NYSE Rules, breach of fiduciary duty/constructive fraud, and breach of contract. The damage amount requested was $668,000. The case was settled for $184,391.
Read more about the arbitration details here.
Unsuitable Investment Recommendations
FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
- Investments can be unsuitable because they are high risk and likely to lose money.
- Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
- Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
- These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.
Jason Garofalo has passed the following exams:
- Series 66 - Uniform Combined State Law Examination
- SIE - Securities Industry Essentials Examination
- Series 55 - Limited Representative-Equity Trader Exam
- Series 7 - General Securities Representative Examination
- Series 24 - General Securities Principal Examination
Jason Garofalo is a registered broker in 24 states. He is also a registered investment advisor in three states.
Jason Garofalo has also worked with the following firms:
- AGA Advisors (CRD#:165772)
- Tricor Advisory Services (CRD#:141775)
- Tricor Financial (CRD#:142518)
- Invest Financial Corporation (CRD#:12984)
- Commonwealth Financial Network (CRD#:8032)
- Citicorp Investment Services (CRD#:23988)
- Yourtrade.Com Securities (CRD#:38455)
- Investin Securities Corp. (CRD#:39295)
- Prudential Securities Incorporated (CRD#:7471)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
Kurta Law Can Help
If you have worked with Jason Garofalo and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org 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.