Securities Lawyers Blog
Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against financial advisor Cary Kievman (Kievman) alleging unsuitable investments and over concentrated positions among other claims. According to brokercheck records Kievman has been subject to five customer complaints.
In August 2016 a customer filed a complaint involving Kievman alleging that from April 2013-October 2014, and from September 2015-December 2016, respondent recommended unsuitable short-term equities, over-concentrated the account in equities, and that he did not receive advice regarding his 2015 required minimum distribution which caused him to miss the RMD and suffer a penalty of $6,000. The claim is current pending.
In a complaint filed in March 2016, a customer alleged that Kievman recommended unsuitable investments that were over-concentrated and did not code her risk tolerance correctly or fully disclose the risks of the investments. The customer is claiming $143,394 in damages. The claim is currently pending.
Brokers in the financial industry have the fundamental responsibility to treat investors fairly. This obligation includes making only suitable investments for their client. The suitable analysis has certain requirements that must be met before the recommendation is made. First, there must be reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence. Common due diligence looks into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors. Second, if there is a reasonable basis to recommend the product to investors the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives. These factors include the client’s age, investment experience, retirement status, long or short term goals, tax status, or any other relevant factor.
Kievman entered the securities industry in 1999. From September 2005 through February 2011 Kievman was associated with Citigroup Global Markets Inc. From February 2011 until January 2012 Kievman was associated with Morgan Stanley Smith Barney. Finally, from January 2012 until November 2016 Kievman was associated with Ameriprise Financial Services, Inc. out of the firm’s Westlake Village, California office location.
The number of events listed on Kievman brokercheck is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
Gana Weinstein LLP’s securities fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of fraud and negligence. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.