Lance Cholet Allegedly Recommended Unsuitable Managed Account

Lance Cholet (CRD #: 3239588), a broker registered with UBS Financial Services, allegedly gave an unsuitable investment recommendation, according to his BrokerCheck record, accessed on January 19, 2023. If you have questions about his alleged conduct as a broker, read on.

Investor Disputes

In a dispute filed on December 7, 2022, an investor alleged that Lance Cholet made an unsuitable recommendation to invest in a certain managed account. The client alleged that this managed account’s bond strategy, based on long-term bonds, was unsuitable given the client’s age.

The investor further alleged that Lance Cholet misunderstood the nature of the managed account when recommending it. This dispute is currently pending.

On September 24, 2019, an investor alleged that Lance Cholet violated the suitability rule and made misrepresentations with regard to recommendations to invest in and hold an options overlay strategy from 2017-2019. The client sought $750,000 in damages and received a settlement of $250,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must examine the information contained in an investor’s profile, such as their age, tax status, and risk tolerance.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise unethical means of influencing investors’ decisions. Misrepresenting an investment’s limitations, requirements, or other features violates this rule.

Background Information

Lance Cholet 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
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 24 – General Securities Principal Examination

Lance Cholet is a registered broker in 33 states and the District of Columbia. He is also a registered investment adviser in New Jersey, New York, and Texas.

He has also worked for the following firms:

• Chase Investment Services (CRD#:25574)
• MetLife Securities (CRD#:14251)
• Metropolitan Life Insurance Company (CRD#:4095)

Kurta Law Can Help

If you worked with Lance Cholet 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.