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Investor Names Peter Ferraro in Dispute Alleging Negligence and Unsuitability

Jul 22, 2022 Unsuitable Investments

Peter Ferraro (CRD #: 2386025), a broker registered with Moloney Securities, is the subject of a pending dispute, according to his BrokerCheck record, accessed on July 10, 2022. Investors may also have worked with Peter Ferraro through Moloney Securities Asset Management. If you have questions about Peter Ferraro’s conduct as a broker, read on.

Investor Dispute

A dispute filed on May 16, 2022, alleged Peter Ferraro engaged in negligence and breached FINRA suitability requirements. The client seeks $75,000 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 take into account a client’s age, tax status, and other information described in their investor’s profile.

  • High-risk and illiquid investments are frequently unsuitable due to their risk and/or difficulty to sell in the near future.
  • Trading activity can also be quantitatively unsuitable, meaning that the broker executed an excessive number of trades, racking up trading fees and commissions that cut into the client’s returns.
  • Investment strategies must also serve investors’ goals. Over-concentration in a particular sector or stock is often an unsuitable investment strategy, due to the high degree of risk.

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

What qualifies as broker negligence?

Several types of broker misconduct qualify as negligence, ranging from the omission of information to unauthorized trading. Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Fine by Florida Office of Financial Regulation

In 2016, the Florida Office of Financial Regulation penalized Peter Ferraro with a fine of $7,500.

Background Information

Peter Ferraro has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Peter Ferraro is a registered broker in seven states and a registered investment adviser in Florida.

He has also worked for the following firms:

  • Moloney Investment Advisory LLC (CRD#:282140)
  • Moloney Securities (CRD#:38535)
  • Westrock Advisors (CRD#:114338)
  • Wunderlich Securities (CRD#:2543)
  • J. Michael-Patrick (CRD#:36990)
  • Pauli Johnson Capital & Research (CRD#:4343)
  • Pauli & Company (CRD#:24851)
  • American Express Financial Advisors (CRD#:6363)
  • IDS Life Insurance Company (CRD#:6321)

Kurta Law Can Help

If you worked with Peter Ferraro 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.