Eileen Cure Allegedly Recommended Unsuitable Investments

Fraud

Eileen Cure (CRD# 2224269), formerly a broker registered with LPL Financial and Avantax (previously H.D. Vest), recommended unsuitable investments, according to customer disputes. MDF Law is investigating the former Nederland, Texas-based financial professional for similar conduct. If you have concerns about your accounts, call our law firm for a free consultation.

To learn more about the allegations against Ms. Cure, continue reading this post. The information below is based on a September 25, 2024 review of her BrokerCheck profile, a Financial Industry Regulatory Authority record.

Pending Disputes Seek 6-Figure Damages

In 2024, three parties of investors filed disputes involving Ms. Cure. These claims allege that she recommended unsuitable investments, including real estate and direct investments, and that she misrepresented material facts. The disputes, which are still pending, seek up to $825,000 in cumulative damages. 

Firm Settled Past Disputes 

In 2022, two parties of investors filed disputes involving Ms. Cure. These disputes included allegations that she over-concentrated a customer’s assets in unsuitable investments and that she recommended an unsuitable product. Her former member firm settled the disputes for a total of $62,333.

Understanding Vital Investor Protections

The allegations contained in the disputes involving Ms. Cure include some common forms of investment fraud. An unsuitable investment, for instance, is a product or strategy that’s not tailored to an investor’s profile. To evaluate the suitability of their recommendations, brokers must consider the customer’s background and objectives, including their risk tolerance, liquidity needs, income, and net worth.

Failure to diversify, also known as over-concentration, describes the allocation of a significant portion of an investor’s portfolio in one security, sector, or asset class. As FINRA explains, concentration is like putting too many eggs in one basket: it places the investor at risk of potentially severe losses if the security, sector, or asset class suffers a downturn. 

Finally, misrepresentation denotes a broker’s failure to accurately explain material facts regarding an investment. For instance, a broker who describes an illiquid non-traded REIT as liquid may be misrepresenting a product that’s unsuitable for a customer with liquidity needs. Brokers who misrepresent investments or strategies may be violating FINRA Rule 2020. This rule prohibits the use of “manipulative, deceptive or other fraudulent” devices to induce the purchase or sale of securities. 

FINRA: Eileen Cure Last Based in Nederland, Texas

Eileen Cure started her career as a broker when she registered with Merrill Lynch in 1992. She departed the firm in 1994 for Investment Management & Research, where she remained until 2004. That year, she registered with H.D. Investment Services (now Avantax), which she left in 2018 to join LPL Financial. She worked at the firm’s Nederland, Texas office until 2021, and has been unregistered as a broker since. With 20 years of experience as a broker, she has completed four industry exams, including the Series 65 and the Series 7. 

Investment Losses? Call MDF Law Today

If you are a former customer of Eileen Cure with concerns about your investments, you may be able to recover lost funds. Call MDF Law to discuss whether a FINRA arbitration proceeding is right for your situation. Our team has lengthy experience recovering millions of dollars for our clients, and we currently offer free consultations to investors across the US. Your time to file a claim may be limited, so call 800-767-8040 to chat with a lawyer today.

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