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Investor Alleges Stephen Spahr Gave Unsuitable Recommendation

Stephen Spahr (CRD #: 865189), a broker registered with Janney Montgomery Scott, allegedly made an unsuitable investment recommendation, according to his BrokerCheck record, accessed on December 5, 2022. Keep reading if you want to know more about Stephen Spahr’s alleged conduct as a broker.

Investor Dispute

On September 27, 2022, an investor alleged that Stephen Spahr made a poor investment recommendation. The client seeks $200,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

  • Investments can be unsuitable because they are high-risk and more likely to cause losses for the client.
  • Investments may also be unsuitable because they are illiquid. Certain securities are meant to be held for an extended time and can penalize investors with high fees if they try to cash out too soon.
  • Trading activity can be quantitatively unsuitable, which means that the broker executed an excessive number of trades.
  • Overall investment strategies can also be unsuitable—overconcentration in a singular stock or sector is a common example.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Background Information

Stephen Spahr has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 5 – Interest Rate Options Examination
  • Series 7 – General Securities Representative Examination
  • Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)

Stephen Spahr is a registered broker in 43 states and the District of Columbia. He is also a registered investment adviser in Florida and Texas.

He has also worked for the following firms:

  • Raymond James & Associates (CRD#:705)
  • Morgan Keegan & Company (CRD#:4161)
  • Citigroup Global Markets (CRD#:7059)
  • Legg Mason Wood Walker (CRD#:6555)
  • Prudential Securities (CRD#:7471)
  • Prudential-Bache Securities (CRD#:65)

Kurta Law Can Help

If you worked with Stephen Spahr 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.