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Kevin Houser Allegedly Recommended Unsuitable Investments

Apr 14, 2022 Business Development Company

Kevin Houser (CRD #: 2513167), a broker registered with Ameriprise Financial Securities, is involved in several disputes involving investment recommendations, according to his BrokerCheck record, accessed on April 8, 2022. Read on if you want to know more about Kevin Houser’s conduct as a broker.

Unsuitable Investment Recommendation Allegations

Kevin Houser has been the subject of several complaints alleging he gave unsuitable investment recommendations to clients.

  • On February 3, 2022, investors alleged that Kevin Houser recommended unsuitable investments to them while working at LPL Financial. Investors allege that investments they made in FS KKR Capital Corp (FSKR), the FS Energy and Power Fund (FSEP), Cole Credit Property Trust IV, and CIM Real Estate Finance Trust were unsuitable, high-risk, and speculative. Investors seek $244,000 in damages in this pending suit.
  • On November 16, 2020, an investor alleged that Kevin Houser made misleading recommendations to invest in Franklin Square BDC, Cole Credit Property Trust IV, and a CIM real estate investment trust (REIT) between July 2013 and February 2014. The investor alleges these investments did not suit his conservative investment profile. He seeks $358,000 in this pending dispute.
  • On July 21, 2020, investors alleged that Kevin Houser made misleading recommendations of investments in Franklin Square business development companies (BDCs) and AXA Annuities between December 2015 and July 2020 which did not match clients’ conservative investment profiles. They sought $300,000 in damages and were granted a $75,000 settlement.
  • On November 1, 2016, an investor alleged Kevin Houser made unspecified unsuitable investment recommendations. The client requested $687,661 in damages and received a $150,000 settlement.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to make investment recommendations that suit investors’ profiles. Investors’ profiles contain information such as their age, tax status, and financial goals. Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulative, deceptive, and other unethical practices to influence the purchase and sale of securities. This includes misrepresenting an investment’s costs, benefits, and risks.

What is a Business Development Company?

A Business Development Company (BDC) is an investment vehicle that provides loans to private businesses, especially young and struggling businesses. BDCs can yield high rewards, but come with high risks that make them unsuitable for many investors.

What is a real estate investment trust (REIT)?

A real estate investment trust (REIT) allows investors to earn dividends from real estate property without needing to manage or own the property themselves. By pooling their money in a REIT, investors own shares of the real estate. However, the illiquid nature of REITs means they are not suitable for all investors.

Background Information

Kevin Houser 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

He is a registered broker in 17 states and a registered investment adviser in Pennsylvania and Texas.

He has also worked for the following firms:

  • LPL Financial (CRD#:6413)
  • Wachovia Securities (CRD#:19616)
  • Citigroup Global Markets (CRD#:7059)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Kevin Houser 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.