Investors Allege Arni Diamond Recommended Unsuitable Investments

Arni Diamond (CRD #: 2667392), a broker formerly registered with Supreme Alliance, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on July 6, 2023. Keep reading if you have questions about Arni Diamond’s conduct as a broker.

Pending Investor Disputes

Two disputes, filed on May 8 and 24, 2023, allege that Arni Diamond breached his contract, violated Regulation Best Interest, and engaged in negligent misrepresentation and other forms of negligence. These disputes seek a total of $100,000 in damages.

Two more disputes, both filed on September 27, 2022, allege that Arni Diamond gave unsuitable investment recommendations and misrepresented investments.

FINRA Rule 2010

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

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s age, investment goals, tax status, and other relevant information.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. This includes the misrepresentation or omission of information, such as an investment’s potential returns, risks, or limitations.

What is broker negligence?

Brokers may act in many negligent ways, including recommending unsuitable investments, misrepresenting material facts, or failing to supervise other brokers.

Investors who feel their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Settled Disputes

From 2017-2022, investors filed 11 disputes alleging that Arni Diamond recommended unsuitable investments. The largest of these disputes were collectively settled for approximately $180,000.

One of these disputes, filed on July 1, 2020, alleged that Arni Diamond failed to conduct due diligence before recommending a “Ponzi-like scheme” involving United Development Funding and GPB Investments. This dispute was settled for $31,358.

Resignation from Dempsey Lord Smith

On October 15, 2020, Arni Diamond was permitted to resign from Dempsey Lord Smith after allegedly violating the firm’s policies and procedures.

Background Information

Arni Diamond has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

He has also worked for the following firms:

• Supreme Alliance (CRD#:45348)
• Dempsey Lord Smith (CRD#:141238)
• Kalos Capital (CRD#:44337)
• Berthel, Fisher & Company Financial Services (CRD#:13609)
• FSC Securities (CRD#:7461)
• Princor Financial Services (CRD#:1137)
• USAllianz Securities (CRD#:40875)
• Jefferson Pilot Securities Corporation (CRD#:3870)
• MetLife Securities (CRD#:14251)
• Metropolitan Life Insurance Company (CRD#:4095)
• Security First Financial (CRD#:6695)
• Guardian Investor Services (CRD#:6635)

Kurta Law Can Help

If you worked with Arni Diamond 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.