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Investor Alleges Phil Sherrill Recommended Unsuitable Investment

Sep 6, 2022 Unsuitable Investments

Phil Sherrill (CRD #: 1160379), a broker registered with Cambridge Investment Research, is the subject of a pending investor dispute, according to his BrokerCheck record, accessed on August 19, 2022. Investors may have also worked with him through Cambridge Investment Research Advisors. If you have questions about his conduct as a broker, read on.

Investor Dispute

On May 13, 2022, an investor alleged that Phil Sherrill gave an unsuitable investment recommendation to generate high commissions and fees and that they were unable to generate reasonable returns on their portfolio by being overconcentrated in this investment. This dispute is pending.

In a dispute filed in 2011, an investor alleged that Phil Sherrill invested his account in unsuitable Sun-Life mutual funds and failed to disclose the risks associated with the fund’s investment strategies. This dispute was settled for $1.45 million.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must examine the information contained in an investor’s profile, such as their tax status, risk tolerance, and other investments.

Brokers must also use this information when recommending investment strategies. A common example of an unsuitable investment strategy is overconcentration in a certain sector or security, which exposes investors to a level of risk that may exceed what their profile allows for.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent tactics to influence the purchase or sale of securities. This includes the misrepresentation or omission of material facts, such as an investment’s risks, limitations, or requirements.

Background Information

Phil Sherrill 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 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 24 – General Securities Principal Examination

Phil Sherrill is a registered broker in Colorado, North Carolina, South Carolina, and Virginia. He is also a registered investment adviser in North Carolina.

He has also worked for the following firms:

  • Householder Group Financial Advisors (CRD#:149564)
  • Securities Service Network (CRD#:13318)
  • Householder Group, Estate & Retirement Specialists (CRD#:107773)
  • SagePoint Financial (CRD#:133763)
  • ING Financial Partners (CRD#:2882)
  • Prudential Financial Planning Services (CRD#:5685)
  • Pruco Securities (CRD#:5685)

Kurta Law Can Help

If you worked with Phil Sherrill 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.