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Victorville Rep Susan Cruz: REIT Complaints Allege 6-Figure Damages
Infinex Investments stockbroker Susan Cruz (CRD# 2213628) allegedly recommend unsuitable investments, according to customer complaints disclosed to the Financial Industry Regulatory Authority. FINRA records state that she is presently based out of Victorville, California.
The two customer complaints listed on Ms. Cruz’s BrokerCheck report allege that while a representative of Cetera Investment Services, she recommended unsuitable and illiquid alternative investments. The allegations specifically concern investments in real estate investment trust (REIT) products. Filed in July and November 2021, the pending complaints both allege damages of $200,000.
FINRA’s suitability rule requires stockbrokers to “have a reasonable basis to believe” that the investment products they recommend to their clients are suitable. FINRA Rule 2111 states that brokers must base their decisions about an investment’s suitability “on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile.” That profile includes the client’s age, their net worth, their risk tolerance, their liquidity needs, their tax status, and more. “A broker’s ‘recommendation,’ which is based on the facts and circumstances of a particular case, is the triggering event for application of the rule,” the rule states.
In a “Broker Statement” about the July 2021 complaint alleging she recommended unsuitable REIT products, Ms. Cruz commented that the customer “had extensive investment experience including holdings in industrial properties and REITS prior tomy [sic] association with them.” She added that there was an “in-person discussion” with the customer in which the investor was provided with a prospectus for the investment. “Risk factors discussedincluded [sic] but not limited to illiquidity, early w/d penalties, associated fees, how dividends are neverguaranteed [sic], as well as the various stages of a REIT,” she continued. “In November 2015 the customer verbally voiced agrievance [sic] with the compliance supervisor. The matter was investigated and in 2016 was determined that therewas [sic] no wrong doing on my part.”
According to the Financial Industry Regulatory Authority, Susan Cruz holds 28 years of securities industry experience. She is presently registered with Infinex Investments in Victorville, California. Her past registrations include Cetera Investment Services (Victorville; 2013-2018), LPL Financial (Hesperia, California; 2011-2013); UVest Financial Services Group (Victorville; 2008-2011); and PFS Investments (Victorville; 1993-2008). Her credentials include the passage of five securities industry qualifying examinations: the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; the Investment Company Products/Variable Contracts Representative Examination, or Series 6; and the Investment Company Products/Variable Contracts Principal Examination, or Series 26. She presently holds three state licenses. (Information current as of March 3, 2022.)
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