John Dewitt Allegedly Recommended an Unsuitable Investment

John Dewitt (CRD #: 1999161), a broker registered with Ausdal Financial Partners, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on March 13, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Dispute

On January 18, 2024, an investor alleged that John Dewitt recommended an unsuitable investment. They further alleged that he made a misleading recommendation and was negligent regarding due diligence. The investor is seeking $100,000. 

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses and fees. Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees. 

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Background Information 

John Dewitt has passed the following exams:

• Series 65 Uniform Investment Adviser 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 

He is a registered broker in California, Iowa, and Tennessee. He is also a registered investment adviser and broker in Illinois. 

During his 33 years of experience, he has registered with six firms: 

• Ausdal Financial Partners (CRD #: 7995) 
• Advanced Planning Securities (CRD #: 14382) 
• SPC (CRD #: 110692) 
• Sammons Securities Company (CRD #: 115368) 
• Woodbury Financial Services (CRD #: 421) 
• MML Investors Services (CRD #: 10409) 

Kurta Law Can Help 

If you have worked with John Dewitt and you have concerns about your investments, do not hesitate to contact us 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.