Seth Mason Allegedly Recommended Unsuitable Investments

Seth Mason (CRD #: 1540891), a broker previously registered with Morgan Stanley, is facing an investor dispute, according to his BrokerCheck record, accessed on July 26, 2023. Keep reading for more information. 

On May 18, 2023, an investor alleged that Seth Mason executed an investment strategy that did not suit his investor. Unsuitable investment recommendations violate FINRA Rule 2111. 

There is a similar dispute on Seth Mason’s record, dated September 21, 2020. The investor alleged that Seth Mason recommended an unsuitable unit investment trust (UIT) and unsuitable mutual funds. 

Investors should know that there are four other investor disputes on Seth Mason’s record between 1998 and 2002. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, and financial goals. 

• 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 overconcentrated in a particular stock or sector.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration to recover their losses.

Background Information 

Seth Mason 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 

He has registered with the following firms: 

• Morgan Stanley (CRD #: 14977) 
• CitiGroup Global Markets (CRD #: 7059) 
• Lehman Brothers (CRD #: 7506) 
• Painewebber Incorporated (CRD #: 8174) 
• Kidder, Peabody & Co. (CRD #: 7613) 

Kurta Law Can Help

If you worked with Seth Mason 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.