Jason Eugene Tarver of Frisco, Texas, a stockbroker registered with Merrill Lynch Pierce Fenner Smith Inc., was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $2,000,000.00 in damages based upon allegations that Tarver used an unsuitable investment strategy involving a line of credit when Tarver was associated with Merrill Lynch Pierce Fenner Smith Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-04179 (September 28, 2021).
In addition to particular investments which may be unsuitable, FINRA Conduct Rule 2111 requires that a member or an associated person must have a reasonable basis to believe that a recommended investment strategy involving a security or securities is suitable for the customer, and specifically provides that:
(a) A member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.
A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.
FINRA Manual, FINRA Rule 2111 (CCH 2022).
This is not the first time that Tarver has been referenced in a customer initiated investment related dispute concerning Tarver’s conduct in the securities industry. FINRA Public Disclosure shows that Tarver was also referenced in a complaint filed on October 3, 2002, in which the customer requested $500,000.00 in damages based upon allegations that Tarver made unsuitable recommendations of over-the-counter equities when Tarver was associated with Merrill Lynch Pierce Fenner Smith Inc.
Tarver has been associated with Merrill Lynch Pierce Fenner Smith Incorporated in Frisco, TX, as a stockbroker since January 11, 1996, and as an investment advisor representative since January 26, 1996.
