Ximena Shannon Allegedly Executed Unsuitable Trades

Ximena Shannon (CRD #: 2570692), a broker registered with Morgan Stanley, allegedly executed unsuitable trades for a client, according to her BrokerCheck record, accessed on October 14, 2022. Keep reading to learn more about her conduct as a broker.

Investor Dispute

In a dispute filed on July 14, 2022, an investor alleged that Ximena Shannon executed unsuitable trades in his accounts from 2021-2022. This dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without an outside review. Investors can still pursue FINRA arbitration after a denial and may be able to recoup their losses.

FINRA Rule 2111

According to FINRA Rule 2111, suitable investments must fit an investor’s risk tolerance, investment time horizon, financial goals, investing experience, and age. Brokers have access to this information through the investor’s profile. If brokers recommend unsuitable investments, the investor may be able to recover losses.

• Investments can be unsuitable because they are high-risk or alternative investments and are likely to lose money. These include investments like non-traded REITs, energy investments, and leveraged, non-traditional ETFs.
• Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended time and investors may have to pay high fees to cash out. Direct Private Placements (DPPs) can be very illiquid.
• Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
• Trading strategies also need to be suitable. If a broker over concentrates certain stocks or utilizes margin trading, they may have chosen an unsuitable trading strategy.

Background Information

Ximena Shannon has passed the following exams:

• 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

Ximena Shannon is a registered broker in 21 states and the District of Columbia. She is also a registered investment adviser in New Jersey, New York, and Texas.

She has also worked for Citigroup Global Markets (CRD#:7059) and Merrill Lynch, Pierce, Fenner & Smith (CRD#: 7691).

Kurta Law Can Help

If you worked with Ximena Shannon 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.