Are you doing your homework before you invest? Simply Googling a broker’s name is not enough — recent misconduct and small disputes might not show up in your favorite search engine. In 2019, The Wall Street Journal reported that a popular site for finding financial planners, LetsMakeAPlan.org, omitted important regulatory…


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Investors beware: Brokers may not always be what they seem. On July 27, 2021, the SEC issued an investor alert warning investors about scammers posing as real brokers with FINRA credentials. Too often, fake brokers have persuaded investors to hand over their savings, never to be seen again. Fraudsters might…


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In 2020, the stock market saw an enormous swell of retail investors enter the market. Zero-commission trading and platforms like Robinhood App have made it tempting for investors to try their hand at self-directed trading. But with newfound trading independence comes an increased likelihood of big financial losses for smaller…


Regulator FINRA says Robinhood did not offer enough oversight for risky options trading strategies.

According to a recent regulatory action by the Financial Industry Regulatory Authority (FINRA), Robinhood Financial “failed to exercise its due diligence before approving customers to place options trades.” Faulty algorithms allegedly approved investors for options trading even though Robinhood should have flagged these investors as ineligible based on their experience…


On the surface, many Master Limited Partnerships (MLPs) might look like healthy investments. If managed wisely, MLPs can offer diversification as well as tax benefits. MLPs combine the tax benefits of publicly traded partnerships with the liquidity of traditional stocks.

To count as an MLP, a partnership must make 90%…


How closely do you review transactions in your securities account? Forgery is a common source of investor complaints in the securities industry and is often the first step toward the misappropriation of funds. …


Direct Participation Programs (DPPs) are investment vehicles that allow investors to pool their money in business ventures that do not trade on a public exchange. They’re also known as “private placements.” …


FINRA has discovered that firms sometimes attempt to dissuade investors from recovering their financial losses through “pre-distribution arbitration agreements.” They may also attempt to prevent investors from pursuing a class action suit. These types of clauses are not allowed under FINRA regulations and are not enforceable. …


Alan Appelbaum recently faced allegations that he over-concentrated his investor’s portfolio in complex, structured investment products (SIPs). The dispute has settled for $1.6 million. These allegations are especially concerning because the investor allegedly stated that she wanted fixed-income investments that preserved her capital. …


Short selling allows investors to profit from a stock’s decline in price. When an investor shorts a stock, they borrow a stock for the express purpose of selling it, hoping that they will be able to buy it back at a lower price. An investor shorts a stock because they…

Jonathan Kurta, Esq.

Jonathan Kurta is a founding partner at Kurta Law, a national law firm representing investors who lost money due to broker misconduct. kurtalawfirm.com

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