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Joseph Jackson Allegedly Recommended Unsuitable Investments in GWG Holdings

Dec 3, 2022 Unsuitable Investments

Joseph Jackson (CRD #: 2351290), a broker registered with Capital Investment Group, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on November 28, 2022. Investors may have also engaged his services through Capital Investment Advisory Services. If you want to know more about his alleged conduct as a broker, read on.

Investor Dispute

On October 21, 2022, an investor alleged that Joe Jackson recommended unsuitable investments in GWG Holdings. The client allegedly invested $250,000 in GWG both individually and through a trust. GWG Holdings has since filed for bankruptcy. 

Further, the client alleged that Joe Jackson failed to inform her of a deadline to exercise the guaranteed minimum income benefit rider on an Ohio National variable deferred annuity.

The investor seeks $400,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

  • Age
  • Financial goals
  • Risk tolerance
  • Time horizon (i.e., how long the investment will be held)
  • Investing experience
  • Tax status

Investors who rely on their broker for recommendations may be able to recover their losses by pursuing FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulation, deception, and other fraudulent tactics to influence investors’ decisions. The omission of information related to an investment, such as its features or risks, violates this rule.

Background Information

Joseph Jackson 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 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination
  • Series 4 – Registered Options Principal Examination
  • Series 24 – General Securities Principal Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

Joseph Jackson is a registered broker in seven states and a registered investment adviser in North Carolina.

He has also worked for the following firms:

  • Cape Fear Securities (CRD#:156359)
  • LPL Financial (CRD#:6413)
  • Wachovia Securities (CRD#:19616)
  • Morgan Stanley (CRD#:7556)
  • Centura Securities (CRD#:36179)
  • Uvest Investment Services (CRD#:13787)
  • Smith Barney Shearson (CRD#:7059)
  • Lehman Brothers (CRD#:7506)

Kurta Law Can Help

If you worked with Joseph Jackson and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.