Samuel Phillips Allegedly Misrepresented 1031 DST Exchange Issue

Samuel Phillips (CRD #: 2239471), a broker registered with Cape Securities, allegedly misrepresented an investment product, according to his BrokerCheck record, accessed on March 21, 2023. Investors may have also worked with him through Cape Investment Advisory. If you want to know more about his alleged conduct as a broker, read on.

Investor Dispute

On January 31, 2023, an investor alleged that Samuel Phillips recommended the exchange of investment real estate for shares in NP Skyloft DST, a 1031 DST exchange issue, in January 2020. The client alleges that Samuel Phillips made false statements and misrepresented the product due to his failure to conduct sufficient due diligence on it.

The client seeks $100,000 in damages in this pending dispute.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile contains information about their age, risk tolerance, and financial goals.

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 prohibits the use of deceptive or manipulative tactics, such as the misrepresentation or omission of material facts, in relation to the purchase or sale of securities.

Background Information

Samuel Phillips 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

Samuel Phillips is a registered broker in 17 states and a registered investment adviser in Alabama and Georgia.

He has also worked for the following firms:

• American Global Wealth Management (CRD#:7388)
• Ameritas Investment Corporation (CRD#:14869)
• ING Financial Partners (CRD#:2882)
• Woodbury Financial Services (CRD#:421)

Kurta Law Can Help

If you worked with Samuel Phillips 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.