Thomas Craft Allegedly Recommended Unsuitable Oil and Gas Investment
Thomas Craft (CRD #: 2355883), a broker formerly registered with Lincoln Financial Advisors, allegedly gave an unsuitable investment recommendation, according to his BrokerCheck record, accessed on October 10, 2022. Keep reading if you have questions about his conduct as a broker.
Investor Dispute
On July 15, 2022, multiple investors alleged that Thomas Craft made an unsuitable recommendation of an oil and gas investment. This dispute is currently pending.
FINRA Rule 2111
FINRA Rule 2111 identifies the three prongs of a suitability determination as: 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before making a recommendation of the particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
Background Information
Thomas Craft has passed the following exams:
- 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 26 – Investment Company Products/Variable Contracts Principal Examination
He has also worked for the following firms:
- Lincoln Financial Advisors (CRD#:3978)
- Cambridge Investment Research (CRD#:39543)
- Donahue Securities (CRD#:24330)
- Sunset Financial Services (CRD#:3538)
- Capital Analysts (CRD#:5478)
Kurta Law Can Help
If you worked with Thomas Craft 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.