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Joseph Cheddar Allegedly Recommended Unsuitable IRA Conversion

Joseph Cheddar (CRD #: 1394510), a broker registered with Allstate Financial Services, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on June 16, 2022. If you want to learn more about Joseph Cheddar’s conduct as a broker, read on.

Investor Dispute

On April 21, 2022, an investor alleged that Joseph Cheddar made an unsuitable recommendation for the client to convert his traditional IRA to a Roth IRA. The client alleges this resulted in a large tax liability, a reduced death benefit in the variable annuity contract, an increase in Medicare premiums, and a loss of social security income.

The investor seeks $303,800 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate securities to determine whether they fit their investor’s financial goals. Brokers must consider the following characteristics described in an investor’s profile:

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

Investors who rely on brokers for recommendations of investments or investment strategies may be able to recover their losses by pursuing FINRA arbitration. 

Background Information

Joseph Cheddar 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 22 – Direct Participation Programs Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

Joseph Cheddar is a registered broker in California, Delaware, New Jersey, Pennsylvania, and Virginia.

He has also worked for the following firms:

  • Primevest Financial Services (CRD#:15340)
  • Pruco Securities (CRD#:5685)
  • New England Securities (CRD#:615)

Kurta Law Can Help

If you worked with Joseph Cheddar 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.