Paul Carnahan Allegedly Overconcentrated Clients in Unsuitable Investments

Paul Carnahan (CRD #: 5586975), a broker registered with GWN Securities, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on January 5, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

On October 18, 2022, several investors filed a dispute alleging that Paul Carnahan made unsuitable investment recommendations and overconcentrated their accounts in these investments. The clients seek $800,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, tax status, and age when making recommendations.

These requirements also apply to the overall investment strategy. For instance, overconcentration in a particular stock or sector may be unsuitable given the client’s risk tolerance.

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

Bankruptcy

On February 28, 2018, Paul Carnahan discharged a bankruptcy.

Background Information

Paul Carnahan has passed the following exams:

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

Paul Carnahan is a registered broker in Michigan and Ohio. He is also a registered investment adviser in Michigan.

He has also worked for the following firms:

• Securian Financial Services (CRD#:15296)
• Centaurus Financial (CRD#:30833)
• Wells Fargo Advisors (CRD#:19616)

Kurta Law Can Help

If you worked with Paul Carnahan 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.