Lawrence Catena Subject of Two Disputes Involving Suitability

Lawrence Catena (CRD #: 2037155), a broker registered with Morgan Stanley, is involved in two investor disputes, according to his BrokerCheck record, accessed on July 13, 2022. If you want to know more about Lawrence Catena’s conduct as a broker, keep reading.

Investor Disputes

Lawrence Catena is the subject of two similar investor disputes:

• On May 10, 2022, an investor alleged that, among other things, Lawrence Catena violated the FINRA suitability requirement concerning structured product investments from December 2021 to May 2022.
• On March 24, 2022, an investor named Lawrence Catena in a dispute alleging unsuitability regarding unspecified investments from January 2020 to February 2022, and other undisclosed allegations.

Both disputes are currently pending.

What are Structured Products?

Structured products are complex and customizable investments consisting of a bond and a derivative component. Investors’ returns depend on the performance of the underlying asset or index—such as swaps, futures, or options.

Investors who believe their broker misrepresented or recommended an unsuitable structured product may be able to recover their funds by seeking out FINRA arbitration. 

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their risk tolerance, tax status, and other investments.

• Securities may be unsuitable for an investor because they are high-risk, leading to losses, or because their lack of liquidity makes them difficult to sell in the short term.
• Investments can also be quantitatively unsuitable. An excessive number of trades generates trading fees and commissions that can cut into clients’ returns so severely that the investor doesn’t turn a profit.
• Suitability also applies to investment strategies. An example of a potentially unsuitable investment strategy is overconcentration, which comes with a level of risk beyond what is appropriate for many investors’ financial goals.

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

Background Information

Lawrence Catena 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

Lawrence Catena is a registered broker in 31 states and the District of Columbia. He is also a registered investment adviser in Florida and Texas.

He has also worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691) and McLaughlin, Piven, Vogel Securities (CRD#:7404).

Kurta Law Can Help

If you worked with Lawrence Catena 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.