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Jeffrey Scott Allegedly Recommended an Unsuitable Investment

Aug 18, 2023 Unsuitable Investments

Jeffrey Scott (CRD #: 2277984), a broker registered with Centaurus Financial, has an investor dispute on his BrokerCheck record, accessed on August 8, 2023. Keep reading if you have questions about his alleged conduct as a broker. 

On July 21, 2023, investors alleged that Jeffrey Scott recommended a high-risk, speculative, and illiquid investment. Speculative investments are often too risky for retail investors. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. 

  • 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 overconcentrated in a particular stock or sector.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

Background Information 

Jeffrey Scott has passed the following exams: 

  • Series 66 Uniform Combined State Law Examination 
  • 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 
  • Series 26 Investment Company Products/Variable Contracts Principal Examination 

He is a registered broker in five states and is a registered investment adviser in Idaho, Oregon, and Utah. 

Jeffrey Scott has registered with the following firms: 

  • Cetera Advisors (CRD #: 10299) 
  • Pacific West Financial Consultants (CRD #: 108728) 
  • United Planners’ Financial Services of America A Limited Partner (CRD #: 20804) 
  • WMA Securities (CRD #: 32625) 
  • InterSecurities (CRD #: 16164) 

Kurta Law Can Help

If you worked with Jeffrey Scott 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.