Rey Descalso Involved in a Dispute Regarding an Unsuitable REIT & BDC
Rey Descalso (CRD #: 4906080), a broker registered with J.W. Cole Financial is involved in a pending investor dispute according to his BrokerCheck record, accessed on March 28, 2022. He is also a registered investment advisor registered with J. W. Cole Advisors.
According to the allegations filed on December 20, 2021, Rey Descalo allegedly sold an unsuitable REIT and BDC. The investor is seeking $50,000.
What are BDCs?
FINRA defines a Business Development Company (BDC) as a domestic, closed-end investment company that is operated for the purpose of making equity and debt investments in small and developing businesses, as well as financially troubled businesses. BDCs can be speculative investments that involve significant risks. As a result, BDC investments may not be suitable for all investors.
What are REITs?
A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. A REIT could contain anything from office buildings and other commercial units. By putting their money into a REIT, investors can own a share of those properties. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments.
If you lost money in unsuitable REITs or BDCs, you might have a viable claim against your broker or broker-dealer, and you should not hesitate to contact the securities attorneys of Kurta Law.
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.
Rey Descalso has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
He is a registered broker in eight states and is also an investment adviser registered in Florida.
Rey Descalso has also worked with Wells Fargo Advisors (CRD#:19616) and A. G. Edwards & Sons (CRD#:4).
Kurta Law Can Help
If you suffered losses after working with Rey Descalso, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org 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.