Steven Knuttila Investigated for Unsuitability and Poor Investment Advice
Minnesota stockbroker Steven Knuttila (CRD# 3039112) has been hit with nine customer complaints relating to unsuitable recommendations and poor investment advice.
Steven Knuttila is currently registered with Capital Financial Services (CRD# 8408), which operates in Perham, Minnesota. He has also worked at Questar Capital Corporation and Questar Asset Management in Minneapolis, but lost his position for failing to follow firm procedures regarding customer complaints and over the use of discretion. Steven Knuttila also worked at USAllianz Securities, also in Perham, Minn., as well as Raymond James located in St. Petersburg, Fla. He also sells insurance.
Capital Financial offers investments in alternative products, CODs, corporate bonds, government securities, real estate, and many other investment products.
According to a Financial Industry Regulatory Authority (FINRA) report, Steven Knuttila has 22 disclosures. Nine of the disclosures are customer complaints; seven have been resolved and two remain. The two pending disputes are from September 2016 and February 2017. Both customers complain that Steven Knutilla provided unsuitable recommendations and poor investment advice.
In the pending customer complaint filed in September, the customer alleges that Steven Knuttila provided poor investment advice regarding variable annuity and real estate security products. The customer is alleging damages of $70,000 for the claim of unsuitability.
In the pending customer complaint filed in February, the customer alleges that Steven Knuttila provided unsuitable recommendations of alternative investments in variable annuities, equipment leasing, mutual funds, oil & gas, and real estate securities. The customer is alleging damages of $139,722.
Steven Knuttila’s seven settled customer complaints alleged breach of contract, misrepresentation, negligence, failure to supervise and breach of contract. The complaints were settled for damages between $40,000 and $200,000.
Brokers and financial advisors are obligated to recommend suitable investments to their clients. An investment is unsuitable if the client cannot afford the potential losses or does not understand the risks associated with the investment. Unsuitability also occurs when the investment does not match the client’s goals and objectives.
Investment brokers are obligated to obtain all relevant information about their client’s income and assets so they can discuss suitable investments with their clients. Also known as the “Know Your Customer” Rule, it requires brokers to consider their client’s needs and goals when making investment recommendations. Specifically, brokers should obtain information about their client’s financial state, financial needs and goals, and their risk tolerance. Brokers who fail to obtain this information, or who knowingly and intentionally disregard this information when advising clients, can be held responsible for any money lost to unsuitable investments. Clients can file claims of unsuitability though FINRA to recover any losses from the investments.
If you believe that you were the victim of investment fraud, contact the experienced investment fraud attorneys at Meyer Wilson today for a free case review.