Adam Kaplan Named in SEC Complaint Alleging Misappropriation

Adam Kaplan (CRD #: 6609019), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith, is involved in a pending SEC complaint, according to his BrokerCheck record, accessed on May 24, 2023. Read on if you have questions about his alleged conduct as a broker.

Pending SEC Complaint

On March 3, 2023, the Securities and Exchange Commission filed a civil complaint alleging that Adam Kaplan and another broker misappropriated over $5 million from at least 60 of their investment advisory clients.

The SEC alleges that Adam Kaplan was associated with an investment advisory firm from May 2018 until his termination in July 2021, and continued to act as an investment adviser to certain clients afterward.

From at least May 2018 through July 2021, Adam Kaplan allegedly overcharged clients by fraudulently inflating the fees listed in clients’ advisory agreements without their knowledge or consent.

Further, the SEC alleges that Adam Kaplan misappropriated clients’ funds from approximately May 2018 through October 2022. He allegedly fraudulently charged his clients’ credit cards and bank accounts for purported investments, additional advisory fees, and other charges.

Adam Kaplan r allegedly also made misrepresentations, falsified documents, and made “Ponzi-like payments” to clients to conceal these activities.

The SEC alleges that, through this misconduct, Adam Kaplan violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

This civil complaint is currently pending.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of deceptive, manipulative, and otherwise fraudulent practices relating to the purchase and sale of securities. Within this section, Rule 10b-5 prohibits fraudulent schemes, as well as untrue statements and misleading omissions of fact.

Investment Advisers Act of 1940

Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 prohibit the use of fraudulent and deceptive schemes or practices.

Termination from IHT Wealth Management

On July 16, 2021, Adam Kaplan was fired from IHT Wealth Management after an investor filed a complaint with the SEC alleging that his signed adviser agreement stated fees should be 1% of his account value, but that he was being charged fees in the 2.5-3% range.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Termination from Merrill Lynch, Pierce, Fenner & Smith

On March 8, 2018, Adam Kaplan was fired from Merrill Lynch, Pierce, Fenner & Smith for allegedly engaging in misconduct involving the use of client logon credentials to access client accounts.

Background Information

Adam Kaplan has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691) and Morgan Stanley (CRD#:149777).

Kurta Law Can Help

If you worked with Adam Kaplan and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.   

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.