Johnathan Hagood Allegedly Executed Unauthorized, Unsuitable Trades
Johnathan Hagood (CRD #: 6778355), a broker registered with Wells Fargo Clearing Services, allegedly executed unauthorized trades, according to his BrokerCheck record, accessed on November 13, 2022. Keep reading if you want to know more about his conduct as a broker.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as the investor’s risk tolerance, age, and tax status.
- High-risk investments may be unsuitable due to their likelihood of losing money.
- Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
- Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
- Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.
Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.
FINRA Rule 3260
Unauthorized trading violates FINRA Rule 3260, which limits brokers to executing discretionary trades in discretionary accounts. Both the firm and the client must approve an account before discretionary trading can occur.
Johnathan Hagood has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Johnathan Hagood is a registered broker in 23 states and the District of Columbia. He is also a registered investment adviser in California and Texas.
Kurta Law Can Help
If you worked with Johnathan Hagood and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.