Imagine a fiduciary, someone you have vested your trust in to manage your wealth, under the scanner for alleged unsuitable investments. A similar situation is being faced by registered broker, Kevin Dooley, as revealed in his BrokerCheck record on February 28, 2024. Dooley is currently embroiled in an investor dispute making the waves. Hang in, we are about to unthread this story for you.
Finding the Core of the Debate
For the uninitiated, Mr. Dooley is under the investors’ lens for reportedly purchasing an unsuitable Real Estate Investment Trust (REIT) on November 21, 2023. Curiously, it ain’t his first brush with an investor dispute pertaining to REITs. Historical journey through his career brings us at two earlier instances with similar allegations.
Sweep of Past Incidents
Join our virtual time-machine as we take you two years past on September 29, 2021, when an investor lodged a grievance alleging that Kevin had endorsed unsuitable alternative investments, over a period spanning 2012 to 2014. This case met its resolution with a settlement of a jaw-dropping $98,400.
Intensify this past excursion a bit more and you land on October 11, 2019. At this time, Kevin faced allegations of recommending three unsuitable REITs, an equity-managed account, and a variable annuity, without proportionate disclosure of the risks associated. This was not taken lightly, as reflected in the whopping settlement of $690,000.
Decoding the Investment Conundrum
To simplify, a variable annuity is an insurance product with an investment flavor. It brings along fees, surrender charges, and potential tax liabilities that can dampen its promised benefits, given its complex nature. The liquidity factor and innate risk make it unsuitable for many investors, especially those risk-averse.
Contrarily, Real Estate Investment Trusts (REITs) are like a go-to vehicle for those interested in real estate returns without actually dabbling in its management. It’s like owning property without being a landlord. However, REITs also come with their own drawbacks – high illiquidity. The category of non-traded REITs adds more risk, not being traded on the public exchange, making them harder to liquidate when needed.
Such enigmatic investments are often under the scanner of the FINRA Rule 2111. It mandates securities to be suitable for the investor, fitting their age, risk tolerance, tax status, investing experience, and financial objectives. Failing to consider these attributes, investments may be labeled unsuitable.
Kevin Dooley: A Glimpse of the Man Under Review
Kevin Dooley brings with him a broad spectrum of expertise, having cleared Series 65 Uniform Investment Adviser Law Examination, Series 63 Uniform Securities Agent State Law Examination, Securities Industry Essentials Examination, Series 7 General Securities Representative Examination, Series 53 Municipal Securities Principal Examination, and Series 24 General Securities Representative Examination.
He has built an expansive clientele serving as a registered broker in 26 states. His career span of 28 years has seen him registering with Equitable Advisors and The Equitable Life Assurance Society of United States.
As an investor who has had prior dealings with Kevin, if you harbor concerns about your dealings, our advice would be to seek legal consolation pronto. Don’t ignore the red flags; after all, your hard-earned finances need your vigilance.
With over millions of dollars operating in the securities market, keeping a close eye on your investments is critical. And remember, it’s not about pointing fingers but being proactive in securing your wealth.