Shawn Spellacy Facing a Six-Figure Suitability Dispute

Shawn Spellacy (CRD #: 2275119), a broker registered with Calton & Associates, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on August 11, 2023. Concerned investors should keep reading. 

On June 30, 2023, an investor alleged that beginning in 2018, Shawn Spellacy recommended risky and unsuitable investments in his trust account. The investor is seeking to recover $719,415.

FINRA Rule 2111 – Unsuitable and Risky Investments 

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. 

• 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 their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Tax Liens 

Shawn Spellacy is the subject of five tax liens, totalling over half a million dollars. 

Background Information 

Shawn Spellacy 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 
• Series 26 Investment Company Products/Variable Contracts Principal Examination 

He is a registered broker in 15 states and D.C. He is a registered investment adviser in California. 

Shawn Spellacy has registered with the following firms: 

• Calton & Associates (CRD #: 20999) 
• Fortis Investors (CRD #: 421)
• G.R. Phelps & Co. (CRD #: 173) 

Kurta Law Can Help

If you worked with Shawn Spellacy 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.