Kathie Foreman Involved in an Unsuitability Dispute

Kathie Foreman (CRD #:4467496), a broker registered with Calton & Associates, is involved in an unsuitability dispute, according to her BrokerCheck record. She is also a registered investment advisor with Advisory Services Network. 

According to the allegations filed on October 5, 2021, Kathie Foreman recommended an unsuitable investment in 2014. The investor further alleges Kathie Foreman misrepresented and omitted material facts regarding the investment. 

A financial advisor who recommends a security or investment is subject to ethical standards enforced by law. Such rules include: 

FINRA Rule 2111: Suitability

“Suitability” is the term used to describe an ethical, enforceable standard for investments that financial professionals must uphold when recommending investments. An investment is only considered “suitable” if it meets the suitability criteria outlined in FINRA Rule 2111.  

A broker must have exercised due diligence and have an adequate reason for believing that an investment will benefit the investors.  

FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices 

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or selling securities to false statements.  

Any of the following can be considered a misrepresentation or omission:  

• Inadequate due diligence concerning security offerings 
• Failure to disclose all material risks 
• Failure to disclose all transaction costs 
• Unrealistic presumptions for investment projections 
• Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment.  

FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade

Kathie Foreman’s alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Background Information 

Kathie Foreman has passed the following exams: 

• Series 66 – Uniform Combined State Law Examination 
• Series 63 – Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 – General Securities Representative Examination 

Kathie Foreman is a registered broker in three states. She is also a registered investment advisor in Texas and Ohio. 

Kathie Foreman has also worked with the following firms: 

• SPC (CRD#:110692) 
• Sigma Financial Corporation (CRD#:14303) 
• Advisortradz (CRD#:104281) 
• Online Brokerage Services (CRD#:104281) 
• Walnut Street Securities (CRD#:15840) 

 Kurta Law Can Help 

If you have worked with Kathie Foreman and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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 that 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.