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Jeffrey Cohen Involved in Three Unsuitability Disputes

Mar 11, 2022 Unsuitable Investments

Jeffrey Cohen (CRD #: 2528929), a broker formerly registered with Moloney Securities, is facing three pending unsuitability disputes, according to his BrokerCheck record, accessed on February 20, 2022.

Pending Unsuitability Disputes

  1. On December 1, 2021, Jeffrey Cohen was involved in an investor dispute alleging unsuitability. 
  2. On July 12, 2021, Jeffrey Cohen was named in an investor dispute after allegedly recommending unsuitable alternative investments. The investor is seeking $150,000.
  3. On August 30, 2019, an investor alleged that Jeffrey Cohen recommended unsuitable investments. The investor is seeking to recover $2,000,000. 

Settled Unsuitability Disputes

Between 2019 and 2020, Jeffrey Cohen was  involved in five similar investor disputes, each alleging unsuitable investment recommendations. The settlements of these five cases were $350,000, $95,000, $125,000, $100,000, and $700,000.

FINRA Rule 2111

FINRA Rule 2111 requires financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy is suitable for their client. Investments may be unsuitable because they do not align with the investor's financial goals, investing experience, age, or risk tolerance.

  • 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 meant to be held for an extended period of time and may be costly to cash out.
  • Securities must also be quantitatively suitable, meaning that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves.

A violation of FINRA Rule 2111 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to "observe high standards of commercial honor and just and equitable principles of trade".

Background Information

Jeffrey Cohen has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • Series 65 - Uniform Investment Adviser Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 22 - Direct Participation Programs Representative Examination
  • Series 62 - Corporate Securities Limited Representative Examination
  • Series 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination

Jeffrey Cohen has also worked with the following firms:

  • Western International Securities  (CRD#:39262)
  • Financial West Group (CRD#:16668)
  • NFP Securities  (CRD#:42046)
  • Intersecurities  (CRD#:16164)

Kurta Law Can Help

If you have been victimized after working with Jeffrey Cohen, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.