Darryl Hall Allegedly Recommended Unsuitable Investment Products

Darryl Hall (CRD #: 4185048), a broker registered with Cuso Financial Services, is facing an investor dispute. This is according to his BrokerCheck record, accessed on July 31, 2023. 

On May 8, 2023, an investor allegedly recommended an unsuitable REIT. 

On May 3, 2023, an investor alleged that Darryl Hall recommended a variable annuity that was not suitable and performed poorly. The investor is seeking $119,976. 

What Are REITs?

Real estate investment trusts (REITs) allow investors to generate returns from a portfolio of real estate without being directly involved in property management. However, REITs tend to be illiquid, which makes them unsuitable for many investors. Non-traded REITs are especially risky because they are not traded on the public exchange, making them difficult or impossible to sell. 

What is a Variable Annuity? 

Variable annuities are complex investments that feature investment and insurance components. The associated fees, surrender charges, and potential tax liability can negate any supposed benefits they offer. The risk associated with the investment component makes them unsuitable for many investors. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Securities may be unsuitable because they are high-risk or illiquid, leading to losses for the investor. They may also be quantitatively unsuitable, meaning that the broker executed an excessive number of trades, cutting into the clients’ returns with trading fees.

Background Information 

Darryl Hall has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination
• 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 

He is a registered investment adviser in 17 states and is a registered investment adviser in California. 

Besides Cuso Financial Services, Darryl Hall has registered with the following firms: 

• Financial Network Investment Corporation (CRD #: 13572)
• Morgan Stanley (CRD #: 7556) 

Kurta Law Can Help

If you worked with Darryl Hall 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.