Todd Rustman Allegedly Breached His Fiduciary Duty

Todd Rustman (CRD #: 2453708), a broker registered with American Trust Investment Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 29, 2024. Details concerning this dispute are provided below. 

Investor Allegations 

On March 9, 2024, an investor alleged that Todd Rustman breached his fiduciary duty and unsuitably overconcentrated his client’s investment portfolio. The investor is seeking $830,000. 

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC. RIAs are fiduciaries, and fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Unsuitable Overconcentration 

FINRA Rule 2111 prohibits unsuitable investment recommendations. Overoncenrated investments are often unsuitable because they expose the investor to unnecessary risk. Brokers are required to consider their investor’s risk tolerance when they make recommendations. 

Diversified portfolios expose investors to a broader swath of the market and lessen the chance that an investor will suffer major losses following a drop in share prices for a particular stock or sector. Investors who rely on brokers for recommendations may be able to recover losses following overconcentration by pursuing FINRA arbitration.

Background Information 

Todd Rustman has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination
• Series 22TO Direct Participation Programs Representative Examination  
• SIE – Securities Industry Essentials Examination
• Series 3 National Commodity Futures Examination 
• Series 22 Direct Participation Programs Representative Examination 
• Series 4 Registered Options Principal Examination 
• Series 51 Municipal Fund Securities Principal Examination  
• Series 24 General Securities Representative Examination 

Kurta Law Can Help 

If you have worked with Todd Rustman and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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. Do not let securities fraud go unchecked. Start your recovery process today.