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Investor Alleges Unsuitability in Dispute With Matthew Stratman

Feb 15, 2023 Unsuitable Investments

Matthew Stratman (CRD #: 5834026), a broker registered with Western International Securities, is the subject of a pending investor dispute, according to his BrokerCheck record, accessed on February 8, 2023. Read on if you have questions about his alleged conduct as a broker.

Investor Dispute

On August 8, 2022, an investor alleged that Matthew Stratman violated the suitability rule. The client seeks $158,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. Brokers must consult the investor’s profile, which describes their tax status, age, risk tolerance, and other information.

Securities may be unsuitable for an investor for several reasons. For example, illiquid securities are intended to be held long-term, making them difficult to sell on short notice and potentially incurring high fees for investors who try to cash them out early.

A series of trades can also be quantitatively unsuitable. Excessive trading generates trading fees and commissions that can significantly reduce an investor’s profit.

Suitability also applies to investment strategies. An example of a potentially unsuitable investment strategy is overconcentration, which can expose an investor to a degree of risk beyond what is appropriate for their financial goals.

Investors who rely on brokers for investment recommendations can potentially recover their losses by seeking out FINRA arbitration.

Background Information

Matthew Stratman has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Matthew Stratman is a registered broker in California, Colorado, Pennsylvania, and Utah. He is also a registered investment adviser in California and Pennsylvania.

He has also worked for the following firms:

  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • AIG Capital Services (CRD#:13158)
  • AXA Advisors (CRD#:6627)

Kurta Law Can Help

If you worked with Matthew Stratman and you have concerns about your investments, please contact us today at 877-600-0098 or 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.