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Investor Alleges William Huff Recommended an Unsuitable Investment

William Huff (CRD #: 5875405), a broker registered with Hornor, Townsend, & Kent, allegedly gave an unsuitable investment recommendation, according to his BrokerCheck record, accessed on May 18, 2023. If you have questions about his alleged conduct as a broker, read on.

Investor Dispute

On April 3, 2023, an investor filed a dispute alleging that William Huff made an unsuitable investment recommendation. The client seeks $130,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles describe an investor’s age, risk tolerance, and overall financial situation.

Some common violations of this rule include:

  • Recommendations of high-risk or illiquid investments. High-risk investments are more likely to lead to losses, and investors may incur high fees when trying to sell illiquid investments.
  • Excessive trading, which violates the need for quantitative suitability. In other words, a broker’s overall trading activity must also suit an investor’s goals.
  • Recommendations of unsuitable investment strategies. Overconcentration of securities in a certain stock or sector, for example, is typically unsuitable due to its level of risk.

Investors who rely on brokers for investment recommendations can potentially recover their losses by pursuing FINRA arbitration.

Background Information

William Huff 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

William Huff is a registered broker in 11 states and a registered investment adviser in Arizona, California, Nevada, North Carolina, and Utah.

He has also worked for MML Investors Services (CRD#:10409).

Kurta Law Can Help

If you worked with William Huff and you have concerns about your investments, please contact us today at 877-600-0098 or 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.