Kurt Klingenberg, a financial advisor associated with Raymond James & Associates, Inc., is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm. The firm is offering free consultations to clients who may have suffered losses due to Klingenberg’s alleged misconduct.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with the elderly being particularly vulnerable. It is crucial for investors to be aware of the signs of misconduct and to take action if they suspect their financial advisor is not acting in their best interest.
Allegations Against Kurt Klingenberg
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According to recent disclosures on Klingenberg’s CRD, a client has alleged that Kurt Klingenberg placed excessive trades and made investments that were not in the client’s best interest. The alleged misconduct occurred between April 11, 2016, and February 2, 2024. The client has requested damages amounting to $500,000. The dispute was denied on February 2, 2024, and involved mutual fund investments.
Understanding FINRA Rules and Excessive Trading
Excessive trading, also known as churning, is a violation of FINRA rules. FINRA Rule 2111 requires financial advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
Excessive trading occurs when a financial advisor engages in a high volume of trades in a client’s account, primarily to generate commissions for the advisor rather than to benefit the client. This practice can result in significant losses for the investor and is considered a form of investment fraud.
The Importance of Investor Awareness
Investors must be vigilant in monitoring their investment accounts and the activities of their financial advisors. Excessive trading can be difficult to detect, as advisors may justify frequent trades as necessary for portfolio management. However, if an investor notices a high volume of trades, significant commission charges, or unexplained losses, it may be a sign of excessive trading.
Investors should regularly review their account statements, question their advisors about the reasons behind frequent trades, and seek second opinions if they suspect misconduct. By staying informed and proactive, investors can protect themselves from potential fraud and financial losses.
Red Flags for Financial Advisor Malpractice
Several red flags may indicate financial advisor malpractice, including:
- Excessive trading or churning in client accounts
- Unauthorized transactions
- Unsuitable investment recommendations
- Failure to disclose material information or risks
- Misrepresentation of investment products or strategies
Recovering Losses Through FINRA Arbitration
Investors who have suffered losses due to financial advisor misconduct may be able to recover their losses through FINRA arbitration. FINRA arbitration is a dispute resolution process that allows investors to seek compensation from brokerage firms and financial advisors for improper conduct.
Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration. The firm operates on a “No Recovery, No Fee” basis, ensuring that clients do not pay legal fees unless a recovery is secured.
Seeking Legal Assistance
Investors who believe they may have been victims of financial advisor misconduct, including excessive trading, should seek legal assistance from experienced investment fraud attorneys. Haselkorn & Thibaut offers free consultations to help investors assess their cases and determine the best course of action.
With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut is well-positioned to assist investors nationwide. To schedule a free consultation, investors can call the firm’s toll-free number at 1-888-885-7162 or visit their website for more information.
