- October 16, 2020
- Fortune Financial
Jeffrey Butler (CRD # 2319063) was a Financial Advisor at Fortune Financial Services, Inc in Kewaskum, WI. Jeffrey Butler has been in the securities industry from 1993-2016 and previously worked at seven different brokerage firms including Concorde Investment Services, LLC and Sterne Agee Financial Services, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Jeffrey Butler has been the subject of five (5) customer complaints, alleging sales practice misconduct:
• July 2019—”Client is requesting the return of investment losses in TD Ameritrade retirement account, stating that investments were not suitable and above her risk tolerance.” The claim was denied.
• March 2019—”Client is alleging fraud, negligence, misrepresentation and suitability relating to MLP and leveraged/inverse ETF investments occurring from March 2012 to May 2015.” The matter settled for $1,000,000.00.
• July 2016—”Client is alleging suitability issues relating to equity purchases in 2014 and 2015.” The mattere settled for $100,000.
• August 2015—”CLIENT IS ALLEGING NEGLIGENCE, FRAUD AND SUITABILITY ISSUES RELATING TO EQUITY PURCHASES OCCURRING IN 2014 AND 2015.” The matter settled for $135,000.00.
• March 2008—”CUSTOMERS ALLEGE THAT REGISTERED REPRESENTATIVE MADE UNSUITABLE BUY AND SELL RECOMMENDATIONS WITH RESPECT TO MUTUAL FUND INVESTMENTS. ALLEGED DAMAGES ARE UNSPECIFIED BUT REASONABLY BELIEVED TO BE IN EXCESS OF $5,000.” The matter settled for $5,809.00.
For a copy of Jeffrey Butler’s CRD, click here
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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