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Did Miguel Montejano Recommend an Unsuitable Loan?

Miguel Montejano (CRD #: 6451770), a broker and investment advisor registered with  Charles Schwab & Co and TD Ameritrade, was involved in an investor dispute, according to his BrokerCheck record, accessed on March 10, 2022. 

According to the allegations filed on November 15, 2021, Miguel Montejano recommended a collateral-based loan that was not in his client’s best interest. The investor sought $585,000, but the firm denied the dispute. Investors should know that firms can deny disputes without any external review and that they can still pursue FINRA arbitration and recover their losses following a denial.

What is a Suitable Investment?

FINRA defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age. 

FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance. 
  3. Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns. 

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

Background Information

Miguel Montejano has passed the following exams:

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

Miguel Montejano is a registered broker in 24 states and a registered investment advisor in Texas. , 

Besides Charles Schwab & Co and TD Ameritrade, Miguel Montejano also works with    TD Ameritrade Investment Management (CRD#:111514) as an investment advisor.

Kurta Law Can Help

If you have worked with Miguel Montejano and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.