• November 16, 2023
• Great Point Capital Financial Advisor

Rene Javier Castro (CRD#:2559410) is a registered broker at Great Point Capital LLC, and a registered investment advisor at Retirement Wealth Management.

 

Broker’s Background

He entered the securities industry in 1994. He previously worked for Center Street Advisors, Inc.; VFG Advisors, Inc; Concorde Asset Management; United Financial Solutions, Inc.; Centaurus Financial, Inc.; Brewer Financial Services, LLC (FINRA expelled the firm in 2011); United Financial Solutions, Inc.; Peak Securities Corporation; Intersecurities, Inc; Morgan Peabody, Inc (FINRA expelled the firm in 2008); Securities America, Inc.; Legacy Advisory Services, Inc; and Pruco Securities Corporation.

 

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2023, Rene Castro became the subject of a customer dispute where client alleges, “registered representative recommended an unsuitable investment.” The damage amount requested is $140,000, and the customer dispute is still pending.

 

In addition, Rene Castro has been the subject of several other customer disputes, which include the following:

• July 2023—“ Client alleges registered representative recommended an unsuitable investment.” The damage amount requested is $100,000 and the customer dispute is still pending.
• February 2023—“ Client alleges registered representative recommended unsuitable investments.” The damage amount requested is $250,000 and the customer dispute is still pending.
• September 2022—“ Claim brought against three registered representative. Castro alleged portion of damages is $100,000 plus punitive damages, fees and interest. The damage amount requested was $100,000 and the customer dispute settled for $102,491.43.
• June 2022—“ Sale of GWG Bonds, claim for lack of suitability, negligence, breach of fiduciary duty, contract, various California statutes. The damage amount requested is $151,000 and the customer dispute settled for $175,000.
• August 2012—“ CLIENT CLAIMS THAT THE FIXED INSURANCE PRODUCT WAS NOT SUITABLE FOR HER GOALS. PRODUCT WAS SOLD IN APRIL OF 2011. The customer dispute was denied.
• April 2010—“ CLIENT ALLEGES THAT THE VARIABLE ANNUITIES AND PROMISSORY NOTE SHE PURCHASED STARTING IN MARCH 2005 WERE NOT SUITABLE FOR HER.” The customer dispute settled for $11,000.

 

For a copy of Rene Castro’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.