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Investor Seeks Six Figures in Suitability Dispute with John Gaffney

Aug 31, 2022 Unsuitable Investments

John Gaffney (CRD #: 2827905), a broker registered with Cetera Advisors, is involved in a pending dispute, according to his BrokerCheck record, accessed on August 5, 2022. If you want to know more about his conduct as a broker, read on.

Investor Dispute

On May 26, 2022, an investor named John Gaffney in an allegation concerning suitability with regards to an options investment strategy. The investor seeks $500,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain a client’s age, tax status, and other information.

  • Investments may be unsuitable because they are high-risk and likely to lose money.
  • Illiquid investments may be unsuitable because they are intended to be held long-term, and may incur high fees for investors who try to cash out early.
  • Overall trading activity can be quantitatively unsuitable, meaning that the broker executed an excessive number of trades. Excessive trading can rack up trading fees and commissions that cut into (or completely consume) clients’ returns.
  • Investment strategies must also suit an investor’s profile. For example, overconcentration in a single sector or stock is often an unsuitable investment strategy because it is high in risk.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Background Information

John Gaffney 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 Gaffney is a registered broker in 14 states and a registered investment adviser in Florida and Texas.

He has also worked for the following firms:

  • B. Riley Wealth Management (CRD#:2543)
  • National Asset Management (CRD#:115927)
  • National Securities Corporation (CRD#:7569)
  • LPL Financial (CRD#:6413)
  • Citigroup Global Markets (CRD#:7059)
  • Prudential Securities (CRD#:7471)

Kurta Law Can Help

If you worked with John Gaffney and you have concerns about your investments, please contact us today at 877-600-0098 or 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.