Unsuitable Investment Recommendations by Jason Price Lamb at Arete Wealth Management Spark Complaints

In the world of investments, trust is currency. When that currency is devalued, the ripple effects can devastate an investor’s financial future. Such appears to be the case with Jason Price Lamb, a financial advisor at Arete Wealth Management, whose professional conduct has recently come under scrutiny.

“The best way to find out if you can trust somebody is to trust them,” Ernest Hemingway once wrote. Unfortunately for some investors, placing their trust in certain financial advisors has proven costly. According to a Bloomberg article, bad financial advice costs investors approximately $17 billion per year.

The allegations: A pattern of unsuitability

According to public records, Lamb has been named in 10 customer disputes since 2014. These complaints collectively sought more than $1.3 million in damages, with eight already resulting in settlements while two remain pending. The consistency of these claims suggests not isolated incidents but potentially systematic issues in investment recommendations.

Most allegations center on unsuitable investment recommendations, particularly involving alternative investments. These complex products typically carry higher risk profiles and often lack liquidity—characteristics that make them inappropriate for many retail investors, especially those with conservative investment objectives or near retirement.

What makes this case particularly noteworthy is the concentration of complaints within a relatively short timeframe. When multiple investors independently raise similar concerns, it warrants closer examination of the advisor’s practices and the broker-dealer’s supervision. Financial advisor complaints like these are not uncommon, but the volume and consistency of allegations against Lamb stand out.

For affected investors, these unsuitable recommendations have resulted in substantial losses, often at times when financial stability is most crucial. Some complainants report being placed in investments that:

• Carried risk levels inconsistent with their stated investment goals
• Lacked appropriate diversification
• Featured high commission structures that benefited the advisor more than the client
• Were illiquid when clients needed access to their funds

The impact extends beyond mere financial loss. Investors have reported delayed retirements, increased debt, and significant emotional distress as direct consequences of these investment decisions.

The advisor’s professional background

Jason Price Lamb operates from Nashville, Tennessee, and is currently registered with Arete Wealth Management. His FINRA BrokerCheck record reveals a professional history that includes affiliation with Center Street Securities, which was later acquired by Arete.

Interestingly, many of the complaints appear to stem from his tenure at Center Street Securities, raising questions about supervision practices and whether the issues continued following Arete’s acquisition. The industry often sees patterns where problematic advisors move between firms, sometimes carrying concerning practices with them.

Financial fact: Studies show that approximately 1.3% of financial advisors have misconduct records, but these advisors are five times as likely to engage in new misconduct as the average advisor. This suggests that past complaints can be predictive of future behavior—a critical consideration for both investors and employing firms.

The clustering of complaints against Lamb places him in a statistical minority within the industry, where most advisors maintain clean records throughout their careers.

Demystifying the rules: What is unsuitability?

At its core, unsuitability means recommending investments that don’t align with a client’s investment profile. FINRA Rule 2111 explicitly requires that financial advisors have a reasonable basis to believe that an investment or strategy is suitable for their client based on the client’s:

• Age and life stage
• Financial situation and needs
• Investment experience
• Risk tolerance
• Investment objectives
• Time horizon

In plain language, your financial advisor should not sell you investments that are too risky, too complex, or otherwise inappropriate for your specific circumstances. Think of it this way: a doctor wouldn’t prescribe heart medication to someone without heart problems—similarly, an advisor shouldn’t recommend speculative investments to someone who needs stable, income-producing assets for retirement.

Alternative investments, which feature prominently in these complaints, often involve complex structures that many investors struggle to fully understand. When an advisor fails to adequately explain these complexities or misrepresents the risks involved, they breach their duty of care.

Consequences and lessons for investors

For advisors like Lamb, the consequences of these complaints include reputational damage, financial settlements, and potentially increased regulatory scrutiny. For broker-dealers, there are questions about supervisory controls and due diligence processes.

But what about you, the investor? What lessons can be drawn from these situations?

• Verify before you trust: Always check your advisor’s record through FINRA BrokerCheck
• Question what you don’t understand: Never invest in something whose risks and features aren’t clear to you
• Be wary of concentration: Legitimate investment strategies typically involve appropriate diversification
• Listen to your instincts: If something feels off about a recommendation, seek a second opinion

Remember that financial advice should illuminate, not obscure. As investors become more educated about their rights and advisors’ responsibilities, the standard of care continues to rise across the industry.

The financial relationship between advisor and client should be one of transparency and aligned interests. When that alignment fails, as these complaints suggest it may have in Lamb’s case, the consequences ripple through lives and portfolios—a reminder that in finance, as in life, trust must be both given carefully and earned continuously. If you believe you have been the victim of investment fraud or unsuitable investment recommendations, consider contacting an experienced securities arbitration law firm like Haselkorn & Thibaut at 1-888-784-3315 for a free consultation.