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Lanny Howarter Involved in 7th Unsuitability Dispute

Jan 25, 2022 Unsuitable Investments

Lanny Howarter (CRD #:813591), a broker and investment advisor registered with Crown Capital Securities, is involved in his seventh unsuitability dispute, according to his BrokerCheck record, accessed on January 5, 2022.  

Pending Unsuitability Disputes 

Since 2020, Lanny Howarter has been involved in five unsuitability disputes. Each alleges that he recommended unsuitable investments, breached his fiduciary duty, and misrepresented securities. Collectively, investors are seeking to recover over $2 million.  

Settled Unsuitability Disputes 

On November 21, 2017, an investor filed a dispute against Lanny Howarter alleging unsuitability, breach of fiduciary duty, and negligence. The investor also accused Lanny Howarter of alleged fraud and failure to supervise in regards to the purchase of various alternative investments. The case was settled for $122,000.  

On March 31, 2010, an investor alleged that Lanny Howarter allegedly made untrue statements in the sale of securities. They also alleged misrepresentation, breach of fiduciary duty, and constructive fraud with respect to sales of a limited partnership program. The dispute settled for $250,000. 

What is Unsuitability? 

FINRA deems trade recommendations inconsistent with the customer's goals and investment profile unsuitable.  

FINRA Rule 2111 states that a broker must take into account their investor’s:  

  • Age 
  • Financial situation and needs 
  • Tax status 
  • Investment objectives 
  • Investment experience 
  • Risk tolerance 

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

What is Misrepresentation? 

Misrepresentation is a common problem in the securities industry. It usually occurs when a stockbroker makes false or misleading statements about a financial product to persuade their customer to invest. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Did you know that any of the following can be considered 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 
  • Losses that can be attributed to a stockbroker's material misrepresentations of facts may result in a viable securities arbitration claim for damages. 

Background Information 

Lanny Howarter 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 22 - Direct Participation Programs Representative Examination  
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination 
  • Series 1 - Registered Representative Examination 

Lanny Howarter is a registered broker in six states. He is also a registered investment advisor in California. 

Besides Crown Capital Securities, Lanny Howarter has also worked with the following firms: 

  • Signator Investors (CRD#:468) 
  • ESI Financial Advisors (CRD#:265) 
  • Equity Services (CRD#:265) 
  • The Lincoln National Life Insurance Company (CRD#:2580) 
  • Lincoln Financial Advisors Corporation (CRD#:3978) 

Kurta Law Can Help 

If you have worked with Lanny Howarter 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 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.