Investors Allege Phillip Cartwright Made Unsuitable Investment Recommendations

Phillip Cartwright (CRD #: 4287303), a broker registered with Woodbury Financial Services, allegedly gave unsuitable investment recommendations, according to his BrokerCheck record, accessed on March 2, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Disputes

On December 16, 2022, several investors filed a dispute alleging that Phillip Cartwright recommended direct/limited partnership investments that were unsuitable for their needs and investment objectives.

The clients further alleged that he failed to fully describe these products’ features and overconcentrated their portfolio in these investments, leading to losses. They seek $75,000 in damages in this pending dispute.

In a dispute filed on May 8, 2020, an investor alleged that Phillip Cartwright recommended an unsuitable private placement in his IRA account and that Woodbury Financial Services failed to conduct adequate due diligence on the investment. The client sought $101,000 and received a settlement of $75,000.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles describe an investor’s age, risk tolerance, and other characteristics.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulative, deceptive, or otherwise unethical tactics to influence investors’ decisions. This includes the misrepresentation or omission of information related to investments, such as their potential fees, risks, or returns.

Civil Lien

On February 8, 2016, Phillip Cartwright was subject to a $5,161.31 civil lien.

Background Information

Phillip Cartwright has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Phillip Cartwright is a registered broker in seven states and a registered investment adviser in Wisconsin.

He has also worked for Morgan Stanley & Company (CRD#:8209) and Robert W. Baird & Company (CRD#:8158).

Kurta Law Can Help

If you worked with Phillip Cartwright 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.