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Investor Claims Richard Allen Recommended Unsuitable Investments 

Feb 8, 2022 Investor Disputes

Richard Allen (CRD #: 1139391), a broker and investment advisor registered with Woodbury Financial Services, is facing a pending dispute alleging unsuitable investment recommendations, according to his BrokerCheck record, accessed on January 15, 2022. 

On October 22, 2021, an investor alleged Richard Allen recommended certain alternative investments that did not meet their needs and objectives. The allegations further state that Richard Allen failed to provide adequate disclosures and conduct a diligent review of the products. The investors are seeking $100,000the case is still pending. 

FINRA Rule 2111 (Suitability Rule) 

Poor investments may not fit FINRA's suitability requirements. Brokers must consider the factors listed below when recommending investments to investors.   

  • The investor's current financial state and tax status  
  • The investor's financial goals   
  • The investor's risk tolerance  

According to FINRA Rule 2111, brokers may be liable for investor unsuitability claims if they fail to take the factors listed above into account and recommend investments that are not suitable. A broker must have exercised due diligence and have an adequate reason for believing that an investment will be suitable or beneficial for the investor.   

To prove an unsuitability claim, you must establish that:  

  • A transaction took place between yourself and the broker  
  • You sustained damages (lost money)  
  • The broker was aware of your financial situation  

Ensure you are not being taken advantage of by contacting the securities attorneys at Kurta Law as soon as possible if you believe you lost funds due to bad investment recommendations. 

Background Information 

Richard Allen has passed the following exams: 

  • 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 

He is a registered broker in six states and a registered investment advisor in three states. 

Richard Allen has also worked with the following firms: 

  • America Advisors (CRD#:110518) 
  • Securities America (CRD#:10205) 
  • Sunset Financial Services (CRD#:3538) 
  • Metlife Securities (CRD#:14251) 
  • Metropolitan Life Insurance Company (CRD#:4095) 
  • Equity Services. (CRD#:265) 
  • Mony Securities Corporation (CRD#:4386) 

Kurta Law Can Help 

If you have worked with Richard Allen and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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.