Mark Hermes Allegedly Executed Unsuitable Investment Strategy

Mark Hermes (CRD #: 4200965), a broker registered with PHX Financial, allegedly executed an unsuitable investment strategy, according to his BrokerCheck record, accessed on June 2, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

On March 8, 2023, an investor alleged that Mark Hermes executed an unsuitable trading strategy involving speculative short-term investments instead of the conservative investments requested by the client.

Mark Hermes allegedly churned the client’s account by purchasing unsuitable stocks and generating excessive commissions. The client also alleged negligence and failure to supervise.

The client sought $50,000 in damages but the firm denied the dispute.

However, investors should be aware that firms can deny disputes without permitting an outside review. Investors can still pursue FINRA arbitration after a denial and may be able to recover their funds.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must use the information in an investor’s profile, such as their age, risk tolerance, and tax status.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence, ranging from unsuitable investment recommendations to excessive or unauthorized trading.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration. 

Background Information

Mark Hermes has passed the following exams:

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

Mark Hermes is a registered broker in 20 states.

He has also worked for the following firms:

• Joseph Gunnar & Company (CRD#:24795)
• WestPark Capital (CRD#:39914)
• Newport Coast Securities (CRD#:16944)
• Freedom Investors Corporation (CRD#:23714)
• Laidlaw & Company (UK) (CRD#:119037)
• Sterne Agee Financial Services (CRD#:18456)
• Emmett A Larkin Company (CRD#:6625)
• LF Financial (CRD#:38619)
• Painte Capital (CRD#:112097)
• Salomon Grey Financial (CRD#:43413)
• Lloyd, Scott & Valenti (CRD#:23640)
• CGF Securities (CRD#:41040)
• Kovack Securities (CRD#:44848)
• J.P. Turner & Company (CRD#:43177)
• Platinum Investment Corporation (CRD#:107211)
• LH Ross & Company (CRD#:37920)
• Emerson Bennett & Associates (CRD#:36171)

Kurta Law Can Help

If you worked with Mark Hermes 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.