Investors Seek $7.6 Million in Disputes with Monty Cerf

Monty Cerf (CRD #: 2269462), a broker registered with UBS Financial Services, is involved in three pending investor disputes, according to his BrokerCheck record, accessed on March 7, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Disputes

In three pending disputes filed from 2019-2022, investors allege that Monty Cerf made misrepresentations and unsuitable recommendations with regard to an options overlay strategy. Investors allege that this misconduct occurred during a collective time frame of 2016-2020. These disputes seek a collective $7.6 million in damages.

Investors filed arbitrations on June 22, 2020, and February 7, 2020, naming Monty Cerf in allegations of the following:

• Fraud
• Misrepresentation
• Unsuitable recommendations
• Failure to supervise
• Negligence
• Breach of contract
• Violations of New Mexico and Florida state securities laws

These allegations were made in regard to recommendations of the Yield Enhancement Strategy. The arbitrations were settled for a total of $2.2 million in damages, as well as additional compensation for fees and pre-judgment interest.

You can read the June 22 arbitration agreement here and the February 7 agreement here.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent means of influencing investors’ decisions. Misrepresenting an investment’s requirements, risks, limitations, or other relevant information violates this rule.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investors’ profiles contain information about their tax status, risk tolerance, and other characteristics.

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

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to maintain their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have the appropriate training or experience.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence. Some examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to supervise other brokers.

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

Background Information

Monty Cerf 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 3 – National Commodity Futures Examination
• Series 7 – General Securities Representative Examination
• Series 24 – General Securities Principal Examination

Monty Cerf is a registered broker in 38 states and the District of Columbia. He is also a registered investment adviser in six states and the District of Columbia.

He has also worked for the following firms:

• Barclays Capital (CRD#:19714)
• Lehman Brothers (CRD#:7506)
• J.P. Morgan Securities (CRD#:18718)
• Bear, Stearns & Company (CRD#:79)
• J.P. Morgan Securities (CRD#:15733)

Kurta Law Can Help

If you worked with Monty Cerf 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.