Investor Demands $1.2 Million from Blake Levy
Blake Levy (CRD #: 4593636), a broker registered with Joseph Gunnar & Co, is involved in an investor dispute, according to his BrokerCheck record, accessed on December 6, 2021. According to the investor, Blake Levy allegedly recommended unsuitable private placement investments between 2014 and 2017. The damage amount requested is $1,200,000—the case is still pending.
What Is a Suitable Investment?
A broker or financial advisor who recommends a security or investment is subject to ethical standards enforced by law. One such standard is known as the suitability rule, also known as FINRA Rule 2111.
FINRA Rule 2111. requires registered financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy suits their client's needs.
According to FINRA, the three prongs of a suitability determination are 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
If you've lost money due to your broker’s recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 20 years of experience litigating securities fraud cases.
- On December 10, 2015, an investor filed a dispute against Blake Levy alleging excessive trading. The damage amount requested was $13,562.70; however, the firm denied the allegations.
- On May 2, 2005, Blake Levy was involved in another dispute for allegedly executing excessive trades in a client's account. The damage amount requested was $85,000 — the dispute is still pending.
What is Excessive Trading?
Churning is another term for excessive trading, which occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors.
Blake Levy has passed the following exams:
- Series 63 - Uniform Securities Agent State Law Examination
- SIE - Securities Industry Essentials Examination
- Series 7 - General Securities Representative Examination
He is a registered broker in 44 states and Washington D.C.
Besides Joseph Gunnar & Co, Blake Levy has also worked with the following firms:
- Westpark Capital (CRD#:39914)
- Newport Coast Securities (CRD#:16944)
- Dawson James Securities (CRD#:130645)
- Sterne Agee Financial Services (CRD#:18456)
- Emmett A Larkin Company (CRD#:6625)
- STG Secure Trading Group (CRD#:41216)
- Salomon Grey Financial Corporation (CRD#:43413)
- Hunter Scott Financial (CRD#:45559)
- J.P. Turner & Company (CRD#:43177)
Kurta Law Can Help
If you suffered losses after working with Blake Levy, don't hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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.