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John Pasacreta Involved in Unsuitability Dispute

Jan 28, 2022 Investor Disputes

John Pasacreta (CRD #: 2398487), a broker and investment advisor registered with Wells Fargo Clearing Services, is involved in an investor dispute, according to his BrokerCheck record, accessed on January 7, 2022.  

According to the allegations filed on October 26, 2021, John Pasacreta recommended investments that were unsuitable for his client’s age and objectives. The firm denied the dispute, but investors should know that firms can deny disputes without any external review. It is also important for investors to know that they can still pursue FINRA arbitration and recover their losses following a denial. 

“Unsuitability” is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer’s goals and investment profile. 

Under FINRA Rule 2111, a customer’s investment profile consists of a wide range of individual characteristics, including the customer’s: 

  • Age 
  • Financial situation and needs 
  • Tax status 
  • Investment objectives 
  • Investment experience 
  • Risk tolerance. 

Brokers have a duty to give advice and recommend investments that are in the best interest of their customers. They should take into account any risk tolerances or goals the person has expressed before making recommendations, as well as if those preferences change over time.  If an investor suffers financial losses as a result of an unsuitable recommendation, the broker’s firm may be liable for such losses. 

If you’ve lost money due to a financial advisor’s bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases. 

Failure to Follow Instructions  

According to the allegations filed on December 7, 2007, John Pasacreta failed to follow his client’s instructions. This resulted in his client’s assets being invested in long-term investments rather than short-term municipal auction-rate securities. The firm denied the dispute. 

It is the duty of a broker to perform a customer’s orders promptly in a manner best suited to serve the customer’s best interest. Failure to follow customer instructions, both as directed and promptly, violates FINRA Rule 2010, which requires all registered members to observe high standards of commercial honor and just principles in their business dealings.  

When a broker fails to follow your instruction and/or execute your order in a timely manner, you may be able to recover your investment losses resulting from the failure to follow your instructions. 

Background Information 

John Pasacreta 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 Pasacreta is a registered broker in 29 states. He is also a registered investment advisor in Texas and Connecticut.  

He has also worked with the following firms:  

  • Morgan Stanley (CRD#:149777) 
  • Morgan Stanley & Co. Incorporated (CRD#:8209) 
  • Banc Of America Investment Services (CRD#:16361) 
  • Quick & Reilly (CRD#:11217) 
  • UBS Financial Services (CRD#:8174) 
  • Robert Thomas Securities (CRD#:10147) 

Kurta Law Can Help 

If you have worked with John Pasacreta and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.