Jerry McCutchen, of Mobile, Alabama, a stockbroker for Berthel, Fisher & Company Services, Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that McCutchen made unsuitable alternative investment recommendations. Letter of Acceptance, Waiver and Consent, No. 201504837401 (Sept. 5, 2016).
According to the AWC, FINRA made a request to McCutchen on July 22, 2016, per FINRA Rule 8210, for McCutchen to provide recorded testimony before FINRA in connection with the allegations. The AWC stated that McCutchen was expected to provide recorded testimony on August 17, 2016.
Subsequently, McCutchen reportedly contacted FINRA on August 10, 2016, in which he stated that he understood FINRA’s request for testimony but that he would not be cooperating. FINRA found that McCutchen’s failure to testify was conduct violative of FINRA Rules 8210 and 2010, leading to his permanent bar.
Public disclosure records reveal that McCutchen has been subject to twenty-six disclosure incidents, according to FINRA’s BrokerCheck. On March 13, 2008, McCutchen settled a customer dispute for $45,000.00 amid allegations of unsuitable investment recommendations and misrepresentations. On July 3, 2012, McCutchen settled a customer dispute for $70,000.00 after a customer alleged fraud, breach of fiduciary duty, negligence, unsuitable recommendations, and significant financial loss associated with private placement investments and real estate investment trusts recommended by McCutchen.
On November 1, 2012, McCutchen settled another customer dispute for $20,000.00 after a customer alleged unsuitable and misrepresented investments. McCutchen settled a customer dispute on June 14, 2013, for $20,000.00 amid allegations against him of making unsuitable investment recommendations.
On October 15, 2013, McCutchen settled a customer dispute for $47,500.00 after a customer alleged unsuitable investment recommendations. McCutchen subsequently settled with another customer for $10,000.00 in connection with allegations against McCutchen of making unsuitable recommendations and misrepresentations.
On June 25, 2014, McCutchen settled yet another customer dispute for $240,000.00 amid allegations of unsuitable investment recommendations. Since then, McCutchen has settled an additional nine customer disputes in which allegations of unsuitable investment recommendations were made against him. Additionally, McCutchen is subject to seven pending customer disputes containing allegations against him of making unsuitable investment recommendations and misrepresentations.
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