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Investor Claims Otto Bohon Recommended Unsuitable Investments

Mar 11, 2022 Unsuitable Investments

Otto Bohon (CRD #:5677597), a broker formerly registered with Centaurus Financial, is involved in an investor dispute, according to his BrokerCheck record, accessed on February 22, 2022.

Unsuitability Allegations

According to the allegations filed on December 2, 2021, Otto Bohon recommended high-risk, high-commission, and illiquid investments to his clients from 2014 through 2016. The investor is seeking $170,000一the case is still pending.

Unsuitable Investment Recommendations Violate FINRA Rule 2111

FINRA Rule 2111 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. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

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

Breach of Fiduciary Duty Allegations

On September 28, 2020, Otto Bohon was named in a customer complaint alleging a breach of fiduciary duty from January 2017 through March 2020. The case was settled for $465,000.

If you suffered investment losses as a result of a breach of fiduciary duty, you could recover your losses in FINRA arbitration. Understanding what constitutes a breach of fiduciary duty comes with many years of handling these kinds of cases. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.

Background Information

Otto Bohon has passed the following exams:

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

Besides Centaurus Financial, Otto Bohon has also worked with Wells Fargo Advisors, (CRD#:19616) and Wells Fargo Investments (CRD#:10582).

 Kurta Law Can Help

If you have been victimized after working with Otto Bohon, 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.