Investors Allege Matthew Childs Recommended Unsuitable Alternative Investment
Matthew Childs (CRD #: 3110916), a broker registered with Portsmouth Financial Services, allegedly gave unsuitable investment recommendations, according to his BrokerCheck record, accessed on April 28, 2023. If you want to know more about his alleged conduct as a broker, read on.
In a pending dispute filed on February 27, 2023, investors named Portsmouth Financial and Matthew Childs in allegations of unsuitable recommendations of a high-risk, high-commission, and illiquid alternative investment to clients.
The dispute further alleges that Portsmouth Financial failed to conduct reasonable due diligence on the investment, which was allegedly represented as being “safe” and producing high returns.
On April 6, 2015, an investor alleged that Matthew Childs misrepresented the risk involved in municipal bonds from December 2012 to May 2014. The client further alleged that these bonds were unsuitable for their trust account. They sought $468,458.02 in damages and received a settlement of $200,000.
FINRA Rule 2111 and Regulation Best Interest
FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles contain information such as investors’ age, tax status, and overall financial situation.
Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.
FINRA Rule 2020
FINRA Rule 2020 bans the use of manipulative, deceptive, or otherwise fraudulent means of influencing the purchase and sale of securities. Misrepresenting an investment’s requirements, fees, or other features violates this rule.
On September 1, 2015, Matthew Childs discharged a bankruptcy.
Matthew Childs 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
Matthew Childs is a registered broker in eight states.
He has also worked for the following firms:
- Select Planning Group (CRD#:172456)
- Oppenheimer & Company (CRD#:249)
- Morgan Stanley (CRD#:149777)
- Southwest Securities (CRD#:6220)
- M. L. Stern & Company (CRD#:8327)
- JWGenesis Financial Group (CRD#:38166)
Kurta Law Can Help
If you worked with Matthew Childs and you have concerns about your investments, please contact us today at 877-600-0098 or email@example.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.