Kurt Berry Involved in Resolute/Petrorock Oil & Gas Dispute

by Seth Simons | January 18, 2024 6:09 pm

Fraud

Kurt Berry (CRD# 4550773[1]), formerly a broker with Regulus Advisors and Vanderbilt Securities, is involved in an investor dispute alleging that he misrepresented investments. MDF Law is investigating the Johnson City, Tennessee-based financial for similar conduct. We encourage investors with complaints to call us for a free consultation. 

Details about the allegations against Mr. Berry, a First Advisors National adviser and owner of Stillwater Financial, follow below. The information herein derives from his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on December 27, 2023. 

Pending Dispute Concerns Oil & Gas Investment

On November 14, 2023, a party of investors filed a dispute involving Mr. Berry. The dispute alleges that when he recommended certain investments, including Resolute/Petrorock oil and gas investments, he “affirmatively represented” that they were safe and consistent with the customers’ investment objectives. Specifically, he allegedly represented that they were consistent with the goal of income generation “with the ability to preserve principal.” 

As the claim alleges, the claimants “were not in a position to recover money lost” at their point in life. It additionally asserts that Mr. Berry represented the products as “a non-correlated alternative to the stock market, which would not experience volatility.” In the course of describing the investments, he allegedly “touted the so-called tax benefits” associated with them, but did not discuss the risks. The dispute finally alleges that he “down played” boilerplate disclosure language as “mandatory” and having “no application.” The dispute, which remains pending, seeks $473,000 in damages.

FINRA Rules Prohibit Misrepresentation

As FINRA explains[2], industry standards prohibit brokers like Mr. Berry from misrepresenting material information regarding products or strategies they recommend. Information is considered material if it constitutes an important consideration for a reasonable investor as they weigh an investment. The product’s risk level, for instance, would likely be considered a material fact. So would its liquidity, time horizon, potential returns, and any fees it might generate. When brokers misrepresent investments, they can lead investors to invest unsuitably. Under Regulation Best Interest, brokers must recommend suitable investments, that is, investments aligned with a customer’s needs and objectives.

Berry Resigned from Pruco Securities over Variable Annuity Allegations

On July 15, 2005, Mr. Berry voluntarily resigned from his former member firm, Pruco Securities. According to a disclosure in his BrokerCheck profile, he departed over allegations that he “made unsuitable recommendations in connection with the sale of variable annuities[3].” 

FINRA: Kurt Berry Based in Johnson City, Tennessee

Kurt Berry launched his career as a broker in 2002, when he registered with Edward Jones in St. Louis, Missouri. Over the following years, he worked at firms including Pruco Securities, MML Investors Services, Regulus Advisors, and Vanderbilt Securities. While he is no longer registered as a broker, he is currently an investment adviser with First Advisors National in Johnson City, Tennessee. He is the owner of Stillwater Financial, according to his BrokerCheck profile. With 19 years of experience as a broker, he has completed two state securities law exams and two general industry/products exams. 

Investment Losses? Call MDF Law

MDF Law’s experienced investor advocates have recovered more than $100 million in investment losses for the victims of broker fraud. If you have concerns regarding investments or strategies recommended by Kurt Berry, call us for a free consultation. You may have limited window to file a claim, so we encourage you to avoid delay. Call 800-767-8040 to speak with MDF Law today.

Endnotes:
  1. 4550773: https://brokercheck.finra.org/individual/summary/4550773
  2. explains: https://www.finra.org/rules-guidance/rulebooks/finra-rules/2020
  3. variable annuities: https://mdf-law.com/variable-annuities-payout/

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