Investors Name Tammie Farrell in Fraud Allegations

Tammie Farrell (CRD #: 2475931), a broker registered with Capital Investment Group, is involved in two disputes alleging fraud, according to her BrokerCheck record, accessed on November 1, 2024. Investors may have also engaged her services through Capital Investment Advisory Services. If you have questions about her conduct as a broker, read on.

Investor Disputes

On September 17, 2024, an investor named Tammie Farrell in allegations of the following:

• Breach of contract
• Common law fraud
• Negligence and gross negligence
• Violations of federal securities laws
• Violation of the North Carolina Securities Act
• Violations of the New York Consumer Protection Act

These allegations were made in connection with GWG Holdings filing for bankruptcy in 2022. The client seeks $275,000 in damages in this pending dispute.

On March 26, 2024, an investor named Tammie Farrell in allegations of breach of contract, common law fraud, negligence and gross negligence, and violations of federal securities laws and the North Carolina Securities Act. In relation to these allegations, the client also alleged that they purchased GWG Holdings L-Bonds in 2019. They seek $357,000 in this pending dispute.

On November 9, 2022, an investor alleged Tammie Farrell recommended unsuitable investments in GWG Holdings. The client seeks $270,000 in this pending dispute.

In a dispute filed on October 11, 2022, an investor alleged Tammie Farrell recommended an unsuitable product. The investor seeks $145,000 in damages in this pending dispute.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish supervisory systems to ensure their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

What are Blue Sky Laws?

Blue sky laws like the North Carolina Securities Act are state securities regulations designed to provide investors with an additional layer of protection against fraud. They frequently also define what investments qualify as securities in the state.

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.

What is broker negligence?

Brokers may act in many negligent ways. Common examples include misrepresentations or omissions of fact, unsuitable investment recommendations, and excessive trading.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Tammie Farrell has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Tammie Farrell is a registered broker in Alabama, Arizona, Florida, Georgia, and North Carolina. She is also a registered investment adviser in North Carolina.

She has also worked for the following firms:

• Wells Fargo Advisors (CRD#:19616)
• First Union Brokerage Services (CRD#:8112)
• BISYS Brokerage Services (CRD#:23302)
• Linsco/Private Ledger Corporation (CRD#:6413)
• SunTrust Securities (CRD#:17499)

Kurta Law Can Help

If you worked with Tammie Farrell 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 that 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.