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Investor Alleges Chris Hartman Sold Unsuitable Investment

Jan 6, 2023 Failure to Supervise

Chris Hartman (CRD #: 1850747), a broker registered with Kovack Securities, allegedly sold an unsuitable investment to a client, according to his BrokerCheck record, accessed on December 29, 2022. Investors may have also engaged his services through Kovack Advisors or TKG Financial. If you want to learn more about his alleged conduct as a broker, read on.

Investor Dispute

In a dispute filed on October 25, 2022, an investor alleged that Chris Hartman sold her an unsuitable investment and that Kovack Securities failed to conduct due diligence and supervision with regard to this sale. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consult the investor’s profile, which contains the following characteristics:

  • Age
  • Financial goals
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status

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

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems over their employees in order to identify and prevent violations of securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

Background Information

Chris Hartman has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Chris Hartman is a registered broker in 19 states and a registered investment adviser in California and Texas.

He has also worked for the following firms:

  • TKG Financial (CRD#:133104)
  • Morgan Stanley Smith Barney (CRD#:149777)
  • Citigroup Global Markets (CRD#:7059)
  • Lehman Brothers (CRD#:7506)
  • Smith Barney, Harris Upham & Company (CRD#:7059)
  • Talley, McNeil & Company (CRD#:16528)

Kurta Law Can Help

If you worked with Chris Hartman and you have concerns about your investments, please contact us today at 877-600-0098 or 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.