A National Securities Arbitration & Investment Fraud Law Firm

Alabama-based Principal Securities Broker Bettye Hay Under Investigation For Unsuitable Investment Recommendations and Misrepresenting an Investment Opportunity

Bettye C. Hays


Silver Law Group is investigating former Mobile, Alabama-based Principal Securities broker Bettye Hays following a customer complaint alleging unsuitable investment recommendations and misrepresenting an investment opportunity.

According to FINRA’s BrokerCheck report on Hays, multiple complaints were received in July of 2017 alleging that Hays had provided unsuitable investment recommendations during and misrepresenting an investment opportunity. The complaint alleges that Hays had investors provide a contribution to a charitable organization with the promise of return on investment. This complaint alleges significant. This complaint was settled in FINRA arbitration for over $500,000.

Hays is not currently employed by any FINRA affiliated broker. She was previously registered with Principal Securities based out Mobile, AL.

An unsuitable recommendation is a serious form of potential broker misconduct.  A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct.  Failure to supervise is a claim made against a brokerage firm in these situations. When a financial advisor uses charity or other false pretenses to solicit an investment it is particularly egregious.

Unauthorized trading occurs when a broker facilitates a transaction without the permission of the customer in a non-discretionary account.  According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.

Often, unauthorized trading is accompanied by churning.  Churning occurs when the account frequently trades for no apparent reason but to generate fees and commissions.

Also, among other investment tenets, brokers are required to recommend suitable investments to their customers. This requires that the broker: Investigates and conducts due diligence into the investment’s attributes including its benefits, risks, tax consequences, and other relevant factors to form a reasonable basis for the recommendation of the product; and appropriately matches the investment with the customer’s specific investment needs and objectives, such as the customer’s retirement status, long or short-term goals, age, disability, income needs, or any other relevant factors.

When a broker or brokerage firm fails to recommend investments to its customers along those guidelines, there must be accountability.  If you have lost money on an investment that did not fit your investment profile, you may be able to recover some or all of your lost money. No financial is allowed to use charity or other cause to urge an investor to turn over their money for anything other than the intended purpose.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unsuitable investment recommendation or unauthorized trading.  The Silver Law Group works on a contingency fee basis, meaning you pay us nothing unless we recover money for you.

If you invested with Principal Securities and Bettye Hays and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.

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