Our firm is investigating Merrill Lynch, Pierce, Fenner & Smith Incorporated broker and investment adviser Cynthia Vartan Keverian (CRD# 5404117) of Glendale, California for potential investment-related misconduct arising from a settled customer complaint alleging misrepresentation in connection with a cryptocurrency investment.
Financial Advisor’s Career History
According to publicly available FINRA BrokerCheck records, Cynthia Vartan Keverian has been registered in the securities industry since 2007.
Over the course of her career:
- She has been registered as a General Securities Representative with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691) since April 7, 2015.
- She is currently based out of the Merrill Lynch branch office located at 203 N Glendale Ave, Glendale, CA 91206.
- She is also registered as an Investment Adviser Representative with Merrill Lynch in California and Texas.
- From June 2012 to April 2015, she was registered with Transamerica Financial Advisors, Inc. (CRD# 16164) in Los Angeles, California.
- From October 2007 to August 2010, she was registered with Wells Fargo Investments, LLC (CRD# 10582) in Northridge, California.
BrokerCheck also lists parallel employment as a financial advisor with Bank of America, N.A. in Glendale, California beginning in 2015, along with certain non-investment-related outside business activities.
Cynthia Vartan Keverian Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck discloses one customer dispute involving Cynthia Vartan Keverian, which has been reported as settled. Although the dollar amount is modest, even relatively small settlements can be important signals for investors evaluating a broker’s history of complaints.
2022 Cryptocurrency Misrepresentation Complaint (Settled)
- Type of disclosure: Customer dispute – settled
- Reporting source: Broker
- Firm involved: Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Product type: Other – Cryptocurrency
- Allegations: The customer alleged misrepresentation in July 2022 relating to a cryptocurrency investment.
- Date complaint received: July 14, 2022
- Alleged damages: Amount not specified in the disclosure
- Resolution:
- Status: Settled (as of November 16, 2022)
- Settlement amount: $850.00
- Individual contribution by Keverian: $0.00
From an investor-protection standpoint, a cryptocurrency-related misrepresentation allegation can raise concerns about:
- Whether the risks, volatility, and speculative nature of digital assets were fully and fairly explained;
- Whether the investment was suitable given the customer’s objectives and risk tolerance; and
- Whether any statements about potential returns or safety downplayed the possibility of significant loss.
While the settlement amount in this matter is relatively small, a misrepresentation allegation involving cryptocurrency still invites scrutiny under FINRA’s suitability, communications, and ethics rules, discussed further below.
To obtain a copy of Cynthia Vartan Keverian’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
In cases involving cryptocurrency or other complex products, investors and their counsel often evaluate the broker’s conduct under FINRA Rule 2111, the core suitability rule. Rule 2111 requires that a broker have a reasonable basis to believe that any recommended transaction or investment strategy is suitable for the customer based on the client’s investment profile, including age, financial situation, risk tolerance, investment objectives, and experience. In the 2022 complaint against Keverian, the customer alleged misrepresentation in a cryptocurrency product. If a broker recommended a speculative or highly volatile crypto investment to a client seeking conservative growth or capital preservation—and failed to ensure that the client understood the risks—arbitrators could conclude that the recommendation was unsuitable under Rule 2111’s reasonable-basis and customer-specific obligations.
Similarly, the conduct alleged in this complaint may be analyzed under FINRA Rule 2210, which governs communications with the public. Rule 2210 requires that all member communications be fair and balanced, provide a sound basis for evaluating the facts, and not omit material information in a way that makes them misleading. When a customer claims that a broker “misrepresented” a cryptocurrency investment, investigators will examine any written materials, emails, texts, or verbal presentations to determine whether the broker overstated potential returns, understated volatility, or suggested that the investment was safer or more stable than it actually was. In arbitration, such misstatements or omissions may be framed as violations of Rule 2210’s prohibition on false, exaggerated, or misleading communications.
Finally, arbitrators often view misrepresentation-based claims through FINRA Rule 2010, which requires firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade. Even if a particular transaction does not neatly fit within a technical suitability violation, allegations that a broker misled a customer about the nature of a cryptocurrency investment, failed to correct obvious misunderstandings, or pursued a sale despite red-flag questions can be viewed as conduct inconsistent with the ethical standards embodied in Rule 2010. In disputes like the one involving Keverian’s 2022 settlement, investors often assert that the pattern of communications and recommendations breached these broad ethical duties, warranting an award of damages.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.