March, 2025 | Based in Scottsdale, AZ
If you’ve been a victim of financial misconduct, don’t wait to take action. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation with our experienced securities fraud attorneys.
Critical Information About Robert J. Westbrook
- Full Name: Robert John Westbrook
- CRD Number: 1189454
- Current Location: Scottsdale, AZ
- Current Employers: Cetera Advisor Networks LLC, Cetera Investment Advisers LLC
- Office Address: 7425 E Stetson Dr, Scottsdale, AZ 85251
- Registration Status: Currently registered with 1 Self-Regulatory Organization and 22 U.S. states/territories
- State Licenses: Licensed in Arizona, California, Colorado, Florida, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Missouri, New Jersey, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Washington, Wisconsin, Wyoming
- Experience: In the industry since 1983 (over 40 years)
- FINRA BrokerCheck: Has 1 customer dispute disclosure (withdrawn)
- Previous Employers: New England Securities (1991-2014), MML Investors Services, Inc. (1986-1990), Massachusetts Mutual Life Insurance Company (1983-1988)
- Professional Designations: Certified Financial Planner, Chartered Financial Consultant
- Ability to Recover Losses: Investors may be eligible for FINRA arbitration
Detailed Investigation into Robert J. Westbrook’s Professional Activities
The financial industry is built on trust, where advisors like Robert John Westbrook are expected to uphold fiduciary responsibilities to their clients. However, recent allegations have raised serious concerns about potential misconduct and unsuitable investment recommendations in Westbrook’s practice. Our law firm is currently investigating claims related to real estate security investments recommended to clients that may have violated regulatory standards.
According to FINRA BrokerCheck records, Westbrook is currently registered with Cetera Advisor Networks LLC and Cetera Investment Advisers LLC in Scottsdale, Arizona. With over four decades in the financial services industry, Westbrook has established a significant client base through his longevity and professional designations as both a Certified Financial Planner and Chartered Financial Consultant.
The crux of our investigation centers on allegations that Westbrook recommended unsuitable real estate security investments to clients. This is particularly concerning given that real estate securities often involve complex structures, illiquidity risks, and potential conflicts of interest that must be fully disclosed and understood by investors. When these investments fail to align with clients’ risk tolerance, investment objectives, financial situation, or need for liquidity, they may constitute unsuitable recommendations under FINRA Rule 2111.
Background and Professional History
Robert J. Westbrook began his financial services career in December 1983 with Massachusetts Mutual Life Insurance Company. He later worked for MML Investors Services, Inc. from 1986 to 1990, before joining New England Securities in January 1991, where he remained for over 23 years until May 2014. Since May 2014, Westbrook has been affiliated with Cetera Advisor Networks LLC as a registered representative, and more recently in June 2023, he also registered with Cetera Investment Advisers LLC as an investment advisor representative.
Throughout his career, Westbrook has obtained several industry qualifications, including passing the Securities Industry Essentials Examination (SIE), General Securities Representative Examination (Series 7), Investment Company Products/Variable Contracts Representative Examination (Series 6), and Uniform Securities Agent State Law Examination (Series 63). These credentials allow him to offer a wide range of investment products and services to clients.
Beyond his broker-dealer affiliations, Westbrook also operates through Westbrook Financial Services Inc., an independent business he started in April 1983, where he provides insurance and financial services. Additionally, he sells fixed insurance products through various companies and is involved in several other business activities, including real estate holdings and property management.
Red Flags in Westbrook’s Investment Recommendations
Our investigation has identified several concerning practices that warrant scrutiny:
1. Unsuitable Investment Recommendations
The core allegation against Westbrook involves recommending real estate securities that may not have been appropriate for his clients’ financial circumstances, objectives, or risk tolerance. FINRA Rule 2111 requires that brokers have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on information obtained through reasonable diligence.
2. Potential Lack of Due Diligence
Complex real estate investment products require thorough due diligence by financial advisors. There are questions about whether Westbrook conducted appropriate research and analysis before recommending these investments to clients, particularly regarding:
- The underlying assets’ quality and valuation
- Fee structures and expenses
- Liquidity constraints
- Historical performance and risk factors
- Conflicts of interest with sponsors or affiliates
3. Inadequate Risk Disclosures
Investors may not have been fully informed about the significant risks associated with the real estate securities, including:
- Potential for complete loss of principal
- Limited or non-existent secondary markets
- Extended hold periods with uncertain exit strategies
- Dependency on market conditions for returns
- Complex tax implications
4. Concentration Issues
Some clients may have had their portfolios over-concentrated in illiquid real estate investments, violating the principle of diversification and potentially exposing them to outsized sector-specific risks.
5. Regulatory Concerns
While Westbrook’s BrokerCheck report shows only one customer dispute (which was withdrawn), this does not necessarily indicate the absence of problematic practices. Many investors are unaware of their rights or the avenues available to seek recovery for investment losses resulting from misconduct.
Legal and Regulatory Framework
Financial advisors like Robert J. Westbrook operate within a comprehensive regulatory framework designed to protect investors. Key regulations include:
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This foundational rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Any form of misconduct, including unsuitable recommendations, can constitute a violation of this rule.
FINRA Rule 2111: Suitability
This rule explicitly mandates that brokers must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. This determination must be based on the customer’s investment profile, including factors such as:
- Age and retirement status
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Investment time horizon
- Liquidity needs
- Risk tolerance
- Other investments and financial information
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
This rule prohibits brokers from employing any manipulative, deceptive, or fraudulent devices in connection with the purchase or sale of securities. Misrepresentations or omissions of material facts about investments would fall under this prohibition.
FINRA Rule 3110: Supervision
This rule requires brokerage firms to establish and maintain a system to supervise the activities of their registered representatives. Cetera Advisor Networks LLC and Cetera Investment Advisers LLC have an obligation to monitor Westbrook’s recommendations and ensure compliance with applicable rules and regulations.
SEC Regulation Best Interest (Reg BI)
Implemented in June 2020, Reg BI establishes a heightened standard of conduct for broker-dealers when recommending securities transactions or investment strategies to retail customers. Brokers must act in the best interest of their clients and cannot place their own financial interests ahead of customers’ interests.
Guidance for Affected Investors
If you have invested with Robert J. Westbrook and are concerned about your real estate security investments, consider taking the following steps:
1. Review Your Account Statements and Transaction Records
Thoroughly examine your investment portfolio, paying particular attention to:
- The percentage of your portfolio allocated to real estate securities
- Performance relative to benchmarks or projected returns
- Fees and expenses associated with these investments
- Any discrepancies between what you were promised and what you received
2. Gather All Investment Documentation
Collect all relevant documents, including:
- Account opening forms
- Investment prospectuses and offering documents
- Written communications with Westbrook
- Notes from meetings or phone conversations
- Account statements and trade confirmations
- Any promotional materials you received about the investments
3. Assess Suitability Based on Your Financial Profile
Consider whether the investments aligned with:
- Your stated investment objectives
- Your risk tolerance as documented in your account forms
- Your need for liquidity
- Your investment time horizon
- Your overall financial situation
4. Understand the Statute of Limitations
Be aware that there are time constraints for filing claims. Generally, FINRA arbitration claims must be filed within:
- Six years of the event giving rise to the claim
- Two years from when the investor should have discovered the problem through reasonable diligence
However, these timeframes can vary based on specific circumstances and applicable state laws. Acting promptly is crucial to preserve your rights.
5. Consult with a Securities Fraud Attorney
If you suspect misconduct, speak with an attorney who specializes in securities fraud and FINRA arbitration. A qualified attorney can:
- Evaluate the merits of your potential claim
- Determine if unsuitable investments were recommended
- Calculate potential damages
- Navigate the FINRA arbitration process
- Advocate effectively for your interests
How Our Securities Fraud Law Firm Can Help
Our law firm specializes in representing investors who have suffered losses due to broker misconduct, including unsuitable investment recommendations. We offer:
Comprehensive Case Evaluation
Our experienced securities attorneys will conduct an in-depth analysis of your investment history with Robert J. Westbrook, examining:
- Account statements and transaction history
- Communications and disclosures (or lack thereof)
- Potential violations of FINRA rules and securities laws
- Calculation of investment losses and potential damages
Forensic Analysis
We collaborate with financial experts to perform detailed forensic analysis of your investments, including:
- Performance comparison with appropriate benchmarks
- Assessment of fees and expenses
- Evaluation of concentration levels and diversification
- Analysis of risk-adjusted returns
FINRA Arbitration Representation
If we determine that you have a viable claim, our attorneys will:
- Prepare and file a Statement of Claim with FINRA
- Gather evidence through discovery
- Identify and interview potential witnesses
- Develop compelling arguments based on applicable laws and regulations
- Represent you throughout the arbitration process
- Negotiate potential settlements where appropriate
Contingency Fee Structure
We understand the financial strain that investment losses can cause. Our firm typically works on a contingency fee basis, meaning:
- No recovery, no fee
- Initial consultations are provided at no cost
- You pay legal fees only if we recover money on your behalf
If you believe you’ve suffered losses due to unsuitable real estate security investments recommended by Robert J. Westbrook, time is of the essence. Don’t hesitate to reach out today. Contact our experienced team of investment fraud attorneys by calling 800-950-6553 or filling out our secure online form to discuss your situation and explore your legal options.
