Jerry Lou Guttman Audit (2023) – A Scam or Legit Broker?

Jerry Lou Guttman  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Jerry Lou Guttman.

BrokerComplaints.com is currently investigating allegations related to Jerry Lou Guttman. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Jerry Guttman

Jerry Lou Guttman is an Investment Adviser. Jerry Lou Guttman’s Central Registration Depository (CRD) number is 1078383 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1078383.

Click here to download a Detailed Audit Report for Jerry Lou Guttman.

Jerry Lou Guttman has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Jerry Lou Guttman’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 10/2/2019
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA:
• Initiated By: Arizona Corporation Commission Securities Division
• Allegations: Pursuant to A.A.C. R14-4-130(A)(17), Jerry L. Guttman engaged in dishonest or unethical practices in the securities industry within the meaning of A.R.S. u00a7 44-1962(A)(10) by, while registered as a salesman, effecting securities transactions which have not been recorded on the records of the dealer with whom such salesman is registered at the time of the transaction. Guttman’s conduct subjects him to an order of revocation pursuant to A.R.S. u00a7u00a744-1962(A)(2), 44-1962(A)(8), and 44-1962(A)(10). Guttman violated A.R.S. u00a7 44-1841 by offering or selling securities in the form of LLC membership interests that were neither registered nor exempt from registration.
• Resolution: Consent
• Sanction Details :: Sanctions: Cease and Desist Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Sanction Details :: Amount: $75,000.00 Sanctions: Restitution
• Sanction Details :: Amount: $2,176,121.00 Sanctions: Revocation

DISCLOSURE 2 – 

• Event Date: 4/20/2018
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Award / Judgment
• Disclosure Detail :: Allegations: Client alleges Guttman misrepresented the the product sold and that it was not suitable.
• Damage Amount Requested: $1,700,000.00
• Damages Granted: $1,550,000.00
• Arbitration Docket Number: 18-01399

DISCLOSURE 3 – 

• Event Date: 11/15/2017
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2017055800301
• DocketNumberAAO: 2017055800301
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Guttman consented to the sanction and to the entry of findings that he sold more than $7,000,000 worth of membership interests in at least six different limited liability companies to 31 customers of his member firm and seven non-customers without first disclosing the sales to the firm. The findings stated that Guttman participated in the sales of these membership interests to firm customers and non-customers by soliciting the membership interests to investors; communicating with investors about their investments; drafting, distributing, and collecting the investment agreements from each investor; collecting and depositing investors’ checks into the companies’ bank accounts; and managing the companies as one of only two managing members.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Bar (Permanent)
• Sanction Details :: Registration Capacities Affected: All capacities
• Duration: Indefinite
• Start Date: 11/15/2017
• Broker Comment: UNITED PLANNERS WAS AWARE OF MY OUTSIDE BUSINESS ACTIVITY, AND SINCE INCEPTION WAS ALSO AWARE THAT THERE WERE INVESTORS THAT PARTICIPATED IN THESE BUSINESSES.

DISCLOSURE 4 – 

• Event Date: 9/20/2017
• Disclosure Type: Employment Separation After Allegations
• Disclosure Resolution:
• Disclosure Detail :: Firm Name: UNITED PLANNERS FINANCIAL SERVICES OF AMERICA
• Termination Type: Discharged
• Allegations: RR offered to public and clients an unapproved investment

DISCLOSURE 5 – 

• Event Date: 4/19/2007
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Settled
• Disclosure Detail :: Allegations: TWO STOCKS WERE LIQUIDATED FOR THE CLIENT IN NOVEMBER 2006, REPS DOCUMENTATION SUPPORTED THE TRANSACTION. CLIENT DISPUTED THE ACTION WHEN SHE DISCOVERED THAT SHE WOULD HAVE TO PAY TAXES ON THE PROFITS WHEN SHE FILED HER TAXES IN APRIL 2007.
• Damage Amount Requested: $8,311.00
• Settlement Amount: $2,500.00
• Broker Comment: THE CLIENT MADE A PROFIT AND WAS UNHAPPY PAYING THE NECESSARY TAXES TO THE IRS.

DISCLOSURE 6 – 

• Event Date: 5/19/2004
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Settled
• Disclosure Detail :: Allegations: CLIENT ALLEGE THAT THEY HAD TO PAY $18,427 IN PREMIUMS AND THAT THIS AMOUNT WOULD PROVIDE THEM WITH $400,000 WORTH OF INSURANCE. CLIENTS ARE REQUESTING A FULL RETURN OF THEIR PREMIUM IN THE AMOUNT OF $100,582.
• Damage Amount Requested: $110,582.00
• Settlement Amount: $8,911.00
• Broker Comment: IN LATE 1996/97 I HAD 2 RADIO SHOWS IN THE PHOENIX AREA THAT BROUGHT MANY CLIENTS TO MY OFFICE. AT THAT TIME I ALSO HAD 3 REPS THAT WORKED THROUGH MY OFFICE AS WELL, ONE OF THOSE REPS WAS JERRY CHIAPPETTA. APPOX 7 OR SO YEARS AGO. I WAS INTRODUCED TO LOUIS & MIRMAM TICK THROUGH JERRY, TO HELP THEM IN REVIEWING AND STRUCTURE THEIR ESTATE PLAN, THAT WAS BEING DRAFTED BY A LOCAL ATTORNEY, TIMM RONAN. I HAD MET WITH THEM AND THEIR SON TO GO OVER DIFFERENT TECHNIQUES THEY MIGHT CONSIDER WITH THEIR PLANNING. JERRY HELPDED THEM WITH THEIR FINANCIAL PLANNING AND INSURANCE NEEDS. I DID NOT GET VERY INVOVLED WITH THE SALE OF PRODUCTS WITH THIS CLIENT, HOWEVER I DID ANSWER SOME QUESTIONS THAT THE CLIENTS MIGHT HAVE HAD REGARDING THE LIFE INSURANCE AND I WAS PUT ON THE APPLICATION FOR A SMALL PORTION OF THE COMMISSION FOR HELPING WITH THE ESTATE PLANNING. AFTER JERRY LEFT MY OFFICE I CONTINUED TO SEND THE TICK’S MY COMPANY NEWSLETTER AND OFFERED TO SIT WITH THEM TO GO OVER ANY QUESTIONS THEY MIGHT HAVE REGARDING THEIR ESTATE PLAN. WE NEVER MET.

DISCLOSURE 7 – 

• Event Date: 12/10/2002
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Settled
• Disclosure Detail :: Allegations: THE CLIENT AND HER SONS (ATTORNEY & ACCOUNTANT)CHOSE TO PURCHASE A VARIABLE LIFE INSURANCE PRODUCT KNOWING THAT THE CASH VALUE PART OF THE POLICY WOULD BE INVESTED INTO SEPERATE ACCOUNTS THAT STOCKS & BONDS AS THE INVESTMENT TOOL.
• Damage Amount Requested: $550,000.00
• Settlement Amount: $550,000.00
• Broker Comment: THE VARIABLE ANNUITY POLICY WAS CANCELLED AND THE INSURED WAS GIVEN A PAID UP LIFE INSURANCE POLICY IN LEIU OF ANY MONEY. THE VALUE OF THE PAID POLICY WAS 550,000.00

DISCLOSURE 8 – 

• Event Date: 10/9/2001
• Disclosure Type: Employment Separation After Allegations
• Disclosure Resolution:
• Disclosure Detail :: Firm Name: HORNOR TOWNSEND & KENT, INC.
• Termination Type: Discharged
• Allegations: PROVIDED INACCURATE INFORMATION CONCERNING SALES CHANGES TO A PROSPECTIVE CUSTOMER IN CONNECTION WITH SOLICITATION OF A MUTUAL FUND PURCHASE.
• Broker Comment: I PASSED ON INFORMATION GIVEN TO ME FROM AMERICAN FUNDS QUALIFIED PLAN DEPARTMENT. LATER I FOUND OUT THAT THE INFORMATION WAS INCORRECT, AND I CALLED THE CLIENT TO INFORM THEM OF THE INCORRECT INFORMATION. HORNER TOWNSEND & KENT TERMINATED ME WITHOUT ALLOWING ME TO EXPLAIN WHAT TOOK PLACE.

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• UNITED PLANNERS’ FINANCIAL SERVICES OF AMERICA A LIMITED PARTNER (CRD#: 20804) :: 11/1/2001 – 10/3/2017 :: PHOENIX, AZ
• HORNOR, TOWNSEND & KENT, INC. (CRD#: 4031) :: 3/9/1998 – 10/12/2001 :: HORSHAM, PA
• FIRST ALLIED SECURITIES, INC. (CRD#: 32444) :: 9/4/1997 – 3/9/1998 :: SAN DIEGO, CA
• SUN INVESTMENT SERVICES COMPANY (CRD#: 5496) :: 12/9/1991 – 9/9/1997 :: WELLESLEY HILLS, MA
• PIM FINANCIAL SERVICES, INC. (CRD#: 10547) :: 10/3/1996 – 9/4/1997 :: SAN MARCOS, CA
• JOHN HANCOCK DISTRIBUTORS, INC. (CRD#: 468) :: 9/20/1991 – 10/30/1991 :: BOSTON, MA
• JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY (CRD#: 5181) :: 9/20/1991 – 10/30/1991 :: BOSTON, MA
• IDS MARKETING CORPORATION (CRD#: 6363) :: 1/19/1983 – 12/19/1983

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Jerry Lou Guttman, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Jerry Guttman

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Jerry Lou Guttman – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (1078383) for the broker – Jerry Lou Guttman
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

The views and opinions expressed in these articles are those of the source BROKERCOMPLAINTS.COM and do not necessarily reflect the official position of ‘Complaints Bureau,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

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