Alicia Blencke Allegedly Made Unsuitable Investment in Client’s Account

Alicia Blencke (CRD #: 2407721), a broker registered with Morgan Stanley, was recently the subject of an investor dispute, according to her BrokerCheck record, accessed on December 15, 2022. Read on if you have questions about her alleged conduct as a broker.

Investor Dispute

On November 9, 2022, an investor alleged Alicia Blencke made an unsuitable managed account investment on August 10, 2022. The client sought $50,000 in damages but the dispute was denied by the firm.

However, investors should know that firms don’t need to permit an outside review before denying a dispute. Investors may be able to recover their losses by seeking out FINRA arbitration after a denial.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

• Investments can be unsuitable because they are high-risk and more likely to cause losses for the client.
• Investments may also be unsuitable because they are illiquid. Certain securities are meant to be held for an extended time and can penalize investors with high fees if they try to cash out too soon.
• Trading activity can be quantitatively unsuitable, which means that the broker executed an excessive number of trades.
• Overall investment strategies can also be unsuitable—overconcentration in a singular stock or sector is a common example.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Background Information

Alicia Blencke has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Alicia Blencke is a registered broker in 18 states and a registered investment adviser in Texas.

She has also worked for the following firms:

• J.P. Morgan Securities (CRD#:79)
• Chase Investment Services (CRD#:25574)
• MetLife Securities (CRD#:14251)
• Metropolitan Life Insurance Company (CRD#:4095)
• Marquis Investments (CRD#:17121)
• GNA Securities (CRD#:10465)

Kurta Law Can Help

If you worked with Alicia Blencke and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

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.