As a financial analyst and writer, I’ve come across the troubling tale of Delbert Carnes (CRD #: 862253), a former broker with Woodbury Financial Services. Carnes is currently facing severe allegations which stem from what appears to be unsuitable investment recommendations and the potential misrepresentation of an investment product.
Digging Deeper into the Charges Against Carnes
I recently learned of an investor dispute in which Carnes finds himself accused of making investment suggestions that were allegedly not in line with the client’s needs, resulting in a significant financial loss of $57,533, reported on November 21, 2023.
At the core of these accusations are two crucial rules set by the Financial Industry Regulatory Authority (FINRA): Rule 2020 and Rule 2111. These focus on preventing the distortion of investment facts and ensuring that investment recommendations are appropriate for the client’s financial situation.
Clarifying FINRA Rules 2020 and 2111
Under FINRA Rule 2020, there’s a strict prohibition against distorting investment details or leaving out key information. This covers what you need to know about costs, expenses, fees, and anticipated returns. Brokers must fully disclose the risks, especially with complex investment products that might be hard to sell or come with steep fees if sold early.
Similarly, FINRA Rule 2111 requires brokers to consider a client’s financial status, age, investment objectives, and other factors to ensure that the recommended investments are suitable. Disregarding these aspects can lead to investments that aren’t a good fit for the client.
An Overview of Carnes’s Professional Path
Carnes has extensive experience in the field, boasting a career that stretches over four decades and encompasses seven different firms, including his time with Woodbury Financial Services. His record also includes four previously settled disputes with investors.
Throughout his career, Carnes has successfully passed several important industry exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 62 Corporate Securities Limited Representative Examination
- Series 1 Registered Representative Examination
For those of you who may have worked with Delbert Carnes and are now questioning your investments, you should take prompt action. Get in touch with a dependable financial advisor or legal professional. Remember that not all instances of securities abuse slide by unnoticed—be proactive in seeking restitution.
It is essential to regularly review your investments and be discerning about who is managing your finances. As Warren Buffett famously said, “Risk comes from not knowing what you’re doing.” So, be watchful and well-informed.
To double-check the authenticity of a financial advisor or investment professional, you can always look up their FINRA CRD number for peace of mind. It’s better to be safe than sorry when it comes to protecting your hard-earned money.
