FINRA Complaint Against Naccarato Raises Investor Protection Questions at CUSO

CUSO Financial Services and financial advisor Chase Naccarato (CRD# 6859373) are at the center of a recent investor complaint involving allegations of unsuitable investment recommendations. These concerns surfaced publicly through filings in January 2025, raising important questions about client protection and advisor accountability. Naccarato, based in Spokane, Washington, is presently registered with CUSO Financial Services and serves clientele through the Spokane Teachers Credit Union.

The complaint filed with FINRA (Financial Industry Regulatory Authority) alleges that Naccarato provided unsuitable investment advice regarding mutual fund investments. The investor claims total damages of approximately $167,000, pointing specifically to perceived violations of suitability guidelines mandated by regulatory agencies. Among the central concerns raised are inappropriate mutual fund selections that reportedly did not align adequately with the client’s expressed level of risk tolerance, long-term financial objectives, or overall financial condition.

Case details and allegations

The current allegations against Chase Naccarato highlight critical points that underscore the importance of advisor responsibility in safeguarding client financial well-being. According to the filed complaint, losses primarily resulted from mutual fund selections perceived to be excessively risky or otherwise inappropriate based upon the investor’s stated financial goals and risk tolerance levels. Additionally, the complaint raises questions about the usage and involvement of a Power of Attorney (POA) document concerning investment decision-making processes, suggesting potential irregularities or lack of transparency. Currently, these allegations remain under investigation, although preliminary responses from CUSO Financial Services have indicated that the company strongly denies any wrongdoing or violations of standards.

In response to these serious allegations, officials from CUSO Financial Services publicly stated that the mutual funds recommended and purchased were aligned appropriately with the investor’s explicit financial profile and long-term goals. Further, they assert the existence of thorough documentation supporting their decision-making process and assessment of client needs. However, final determinations regarding culpability are still awaiting the conclusion of the regulatory investigation and FINRA arbitration hearing.

Unfortunately, circumstances such as these are far from isolated incidents. According to recent reports published by Investopedia, financial advisor misconduct—ranging from unsuitable advice to outright fraud—is a growing concern for investors nationwide. These inappropriate recommendations and fraud schemes cost American investors billions of dollars each year. In fact, FINRA has stated publicly that investors lose over $50 billion annually due to unsuitable investment recommendations and fraudulent practices. Moreover, roughly 7% of all practicing financial advisors have recorded disclosure events on their professional FINRA profiles, indicating past instances of regulatory actions, complaints, or disciplinary proceedings.

Professional background and regulatory history

Chase Naccarato brings over six years of relevant experience in financial advisory and securities brokerage services. Prior to joining the team at CUSO Financial Services, Naccarato gained industry experience serving with Vanguard Marketing Corporation located in Scottsdale, Arizona. His credentials within the financial sector reflect an extensive regulatory-approved qualification profile, having successfully completed a variety of standardized FINRA licensing examinations, including:

• Series 66: Uniform Combined State Law Examination, which qualifies advisors to provide both securities and investment advisory services.
• Series 63: Uniform Securities Agent State Law Examination, allowing for brokerage services on a multi-state basis.
• Series 7: General Securities Representative Examination, permitting professional trading in stocks, bonds, mutual funds, and other securities.
• Securities Industry Essentials (SIE) Examination: Tests fundamental knowledge required of all industry practitioners.

Naccarato currently maintains securities licenses across multiple states, including Arizona, Florida, Idaho, Maryland, Oregon, and Washington. This multi-state licensure allows him to provide financial guidance and investment recommendations nationwide.

Understanding FINRA rules and protecting investors

The pending claim involving Chase Naccarato revolves around a vital investor protection rule known as FINRA Rule 2111. This regulation explicitly mandates financial advisors to ensure a reasonable basis exists for believing that any recommended transaction or investment suits the client’s specific interest based on several clearly defined suitability factors, which include:

• Investor’s financial situation and capacity to tolerate losses
• Short-term and long-term investment objectives
• Risk tolerance and investing preferences
• Investor’s overall sophistication and prior investment experience

In practical terms, Rule 2111 reflects the financial industry’s commitment to ensuring that financial professionals serve their clients responsibly, much like a doctor prescribing medication tailored precisely to the patient’s needs. When this foundational rule is breached or ignored, investors can endure devastating financial repercussions.

Alarmingly, the rise of investment fraud and misconduct often has lasting detrimental effects, not merely financial, but psychological and emotional as well. Victims experience anxiety, distrust, and losses that can undermine their ability to achieve financial stability or plan effectively for their futures.

Lessons and implications for investors

This crucial case involving Naccarato underscores several important considerations every investor should regularly address to protect themselves adequately and effectively:

• Regular reviews: Consistently monitor all account statements and investment reports carefully.
• Ask questions: Do not hesitate to ask your advisor for detailed explanations regarding investment choices or strategies that seem unclear or potentially inconsistent with your goals.
• Document clearly: Keep records of investment objectives, communications, and periodic reviews.
• Understand your rights: Familiarize yourself thoroughly with investor protection rules and guidelines offered by FINRA and other regulatory bodies.

In addition to vigilance, always perform thorough background checks on potential advisors by accessing FINRA’s publicly available resources, like BrokerCheck. Resources such as Financial Advisor Complaints also offer valuable insight and an opportunity to report concerns promptly. Utilizing such tools empowers investors, promoting transparency and accountability within financial services.

Ultimately, suitable investment advice is about far more than following rules or guidelines—it represents the cornerstone of building trust between advisors and their clients. With trust intact, long-term financial partnerships flourish, allowing investors to achieve secure futures. Cases like those currently involving Chase Naccarato serve as crucial reminders that the financial advisory industry must remain dedicated to transparency, integrity, and client-centric practices. Whether you have accumulated considerable investment experience or are just embarking upon your financial journey, understanding and asserting your protections will prove indispensable in safeguarding your financial security for years ahead.