Meyer Wilson’s investment misconduct attorneys are now investigating potential unsuitable investments claims against broker Kevin C. Butler.
According to a BrokerCheck report from the Financial Industry Regulatory Authority (FINRA), Kevin Butler has been a registered broker for 19 years and is currently registered in 26 different U.S. states.
Kevin Butler is currently employed with Morgan Stanley, where he has been registered since January 2010. His previous registrations include Wells Fargo Advisors LLC from July 2003 to January 2010, Prudential Securities Inc. from July 2000 to July 2003, and Dean Witter Reynolds Inc. from January 1998 to July 2000.
Currently, Kevin Butler has one complaint pending against him filed. The customer is seeking $275,000 in damages over allegations of unsuitable investments. The complaint is the subject of a pending arbitration with FINRA.
Kevin Butler’s BrokerCheck report also shows a history of three prior customer disputes, all of which have been resolved.
The most recent dispute was filed in February of 2016 by a customer who alleged Kevin Butler recommended unsuitable investments between March 2014 and January 2016. This complaint was settled in March 2016 for $70,000.
In September 2015, a client made an oral complaint against Kevin Butler that raised allegations of unsuitable investments made in her account from January 2010 to August 2015. The complaint was promptly resolved for $21,000.
What Are Unsuitable Investments?
Investors count on their brokers to recommend only investments that are well suited to the investor’s particular circumstances.
Because investors vary widely in their goals, needs, and tolerance for risk, an investment that works well for one investor could be wholly unsuitable for another. For example, a young investor at the beginning of a career will likely have very different needs from those of a retiree who depends on investments for income.
Part of your broker’s job is to recommend only investments that are suitable to your unique situation. That duty requires your broker to get to know you, your circumstances, and the investment goals you hope to reach.
Good broker practice requires consideration of factors such as your tolerance for risk, your overall financial circumstances, and your own investment experience and understanding. The investments your broker recommends must comport with these factors.
You have the right to expect suitable investment recommendations from your broker. Your broker works under a legal obligation to recommend only investments that are well suited to your particular circumstances. Recommending unsuitable investments is not just bad broker practice—it can also result in severe financial loss.
The investment misconduct attorneys at Meyer Wilson are ready to help. If you believe your broker may have chosen unsuitable investments for you, give us a call today or fill out our confidential online form to request a case evaluation.
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