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John Donoso Involved in Unsuitability Dispute

Feb 28, 2022 Unsuitable Investments

John Donoso (CRD #: 4533488), a broker registered with Newbridge Securities Corporation, is facing an unsuitability dispute, according to his BrokerCheck record, accessed on February 15, 2022. He is also a registered investment advisor with Newbridge Financial Services Group.

According to the allegations filed on December 9, 2021, John Donoso recommended unsuitable investments. The investor is seeking $250,000一the case is still pending.

BrokerCheck does not provide details regarding the nature of the investments; however, a broker must have exercised due diligence and have an adequate reason for believing that an investment will be suitable or beneficial for the investor. 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. 

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning 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.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration if their broker recommended an unsuitable investment. 

Civil Lien

In 2019, John Donoso became the subject of a civil lien for $15,476.18. 

Background Information

John Donoso 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

John Donoso is a registered broker in five states. He is also a registered investment advisor in Texas and New Jersey.

John Donoso has also worked with the following firms:

  • Cetera Advisors (CRD#:10299)
  • Gilford Financial Corp. (CRD#:126593)
  • Gilford Securities Incorporated (CRD#:8076
  • Chase Investment Services Corp. (CRD#:25574)
  • Wachovia Securities (CRD#:19616)
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
  • Fahnestock & Co (CRD#:249)

Kurta Law Can Help

If you have worked with John Donoso and have concerns about your investments, 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.