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Berthel, Fisher & Company Financial Services, Inc. Broker Jerry McCutchen, Sr. REIT Losses

Posted on Monday, July 29th, 2019 at 2:54 pm    

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Erez Law is currently investigating Berthel, Fisher & Company Financial Services, Inc. broker Jerry McCutchen, Sr. (CRD# 1076678) regarding real estate investment trust (REIT) losses. McCutchen was registered with Berthel, Fisher & Company Financial Services, Inc. in Mobile, Alabama from 2007 to 2014, when he was terminated by the firm. McCutchen is no longer registered with any brokerage firm.

In September 2016, FINRA permanently barred McCutchen from acting as a broker or otherwise associating with firms that sell securities to the public after he “refused to appear for on-the-record testimony requested by FINRA in connection with an investigation into allegations by certain customers that he made unsuitable recommendations to them with regard to the purchase of certain alternative investments,” according to his CRD report.

McCutchen has also been the subject of 41 customer complaints between 2000 and 2019, two of which were closed without action and two were denied, according to his CRD report. Thirty-one of those cases were settled. Recent complaints are regarding:

December 2018. “The clients allege the investments they purchased between 2007 and 2013 were unsuitable and misrepresented by the representative. The clients also allege the firm failed to supervise the actions of the representative and to conduct adequate due diligence.” The customer is seeking $625,000 in this pending customer complaint.

September 2018. “The clients allege the products they purchased between 2010 and 2014 were unsuitable and misrepresented to them by the representative. They also allege the firm failed to supervise the actions of the representative.” The case is currently pending.

May 2018. “The client alleges the investments she purchased in 2007 and 2009 were unsuitable and misrepresented to her by the representative. The client also alleges the firm failed to supervise the actions of the representative.” The customer is seeking $900,000 in this pending customer complaint.

May 2018. “The client alleges the investments she purchased in between 2005-2010 were unsuitable and misrepresented to her by the representative. The client also alleges the firm failed to supervise the actions of the representative.” The customer is seeking $300,000 in this pending customer complaint.

March 2018. “The claimants allege the investments they purchased in 2008 were unsuitable and misrepresented to them. They also allege the firm failed to supervise the representative.” The customer is seeking $1 million in this pending customer complaint.

February 2018. “The client alleges that the investments he purchased in 2007 and 2008 were unsuitable and misrepresented by the representative. The client also alleges the firm failed to supervise the actions of the representative.” The case was settled for $12,500.

August 2017. “The claimants allege that the investments they purchased between October of 2007 and July of 2009 were unsuitable and were misrepresented to them by the representative. The clients also allege that the firm failed to supervise the actions of the representative.” The case was settled for $59,000.

June 2017. ”The client alleges that the investments she purchased between 2007 and 2014 were unsuitable and were misrepresented to her by the representative. The client also alleges that the firm failed to supervise the actions of the representative and failed to conduct adequate due diligence.” The customer sought $175,000 in damages and the case was settled for $40,000.

June 2017. “Claimant alleges registered representative mishandled assets by over concentrating the assets in illiquid non-traded alternative investments, which were unsuitable for the claimant’s age, investment goals and risk tolerance.” The customer sought $569,000 in damages and the case was settled for $40,000.

May 2017. “The clients allege that the investments they purchased between 2008 and 2010 were unsuitable and were misrepresented to them by the representative. The clients also allege that the firm failed to supervise the actions of the representative.” The customer is seeking $817,000 in this pending customer complaint.

May 2017. “Jerry D. McCutchen was named in a customer complaint that asserted the following causes of action: violations of the Alabama Securities Act; breach of fiduciary duty; violation of FINRA/NYSE rules; breach of contract and negligence; negligent supervision; fraudulent inducement to hold investment; and control person liability under Alabama and federal securities laws. The causes of action relate to Claimants’ investment in equipment leases, Direct Participation Programs and the real estate investment trusts (“REITs”).” The customer sought $626,000 in damages and the claimants were awarded damages in the amount of $1.2 million.

February 2017. “The clients allege that the investments they purchased in 2009 and 2010 were unsuitable and were misrepresented to them by the representative. The clients also allege that the firm failed to supervise the actions of the representative.” The case was settled for $12,000.

December 2016. “The clients allege that the investments they purchased in 2009 and 2010 were unsuitable and were misrepresented to them by the representative. The clients also allege that the firm failed to supervise the actions of the representative.”

December 2016. “Customers allege in or around June 2006, they invested their savings in REITs but wanted to incur as little risk as possible. Registered representative purportedly guaranteed a return on their investments between 7% and 10%, stated they would receive $25,000 annually, retain their principle and that these investments were low risk and safe. Registered representative is alleged to have misrepresented each investment both at the time he sold the investments and afterward.” The customer sought $480,000 in damages and the case was settled for $50,000.

November 2016. “The clients allege that the investments they purchased between 2006 and 2009 were not suitable and were misrepresented to them by the representative. The clients also allege the firm failed to supervise the actions of the representative.” The customer sought $990,000 in damages and the case was settled for $350,000.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Berthel, Fisher & Company Financial Services, Inc. may be liable for investment or other losses suffered by McCutchen’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.