Timothy Farris Subject of Unsuitable Investment Allegations

Timothy Farris (CRD #: 2178521), a broker registered with Cetera Advisors, allegedly executed unsuitable trades, according to his BrokerCheck record, accessed on November 15, 2024. Investors may have also engaged his services through Cetera Investment Advisers. Keep reading for more details on his alleged conduct as a broker.

Investor Disputes

On October 8, 2024, an investor filed a dispute alleging that Timothy Farris engaged in excessive and unsuitable trading from 2020-2021, and that the firm failed to adequately supervise the account. The client seeks $207,649 in damages in this pending dispute.

On July 17, 2023, an investor made similar allegations that Timothy Farris executed excessive and unsuitable trades from 2015 to 2021. The investor further alleged that the broker-dealer’s supervision of their account was inadequate. This dispute was settled for $305,000.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must also ensure that supervisory personnel have the training or experience necessary for their role.

FINRA Rule 2111 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

• Some common violations of this rule include:
• Excessive trading, which violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to losses or high fees for the investor.

Background Information 

Timothy Farris has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 66 Uniform Combined State Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 31 Futures Managed Funds Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 
• Series 9 General Securities Sales Supervisor – Options Module Examination 
• Series 10 General Securities Sales Supervisor – General Module Examination 
• Series 24 General Securities Principal Examination 
• Series 8 General Securities Sales Supervisor Examination 

He has registered as a broker in Maryland, Michigan, North Carolina, and Wisconsin. He is also a registered investment adviser in Michigan. 

Timothy Ferris has registered with the following firms: 

• SPC (CRD #: 110692) 
• Sigma Financial Corporation (CRD #: 14303) 
• Ameriprise Financial Services (CRD #: 6363) 
• Ameriprise Advisor Services (CRD #: 5979) 
• Pruco Securities (CRD #: 5685) 
• The Prudential Insurance Company of America (CRD #: 680) 

Kurta Law Can Help

If you worked with Timothy Ferris 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.