Corey Engelhard Allegedly Recommended an Unsuitable UIT
Corey Engelhard (CRD #: 2788550), a broker registered with Morgan Stanley, was recently the subject of an investor dispute, according to his BrokerCheck record, accessed on January 18, 2023. If you have questions about his alleged conduct as a broker, read on.
Investor Dispute
On October 10, 2022, an investor alleged that Corey Engelhard made an unsuitable recommendation of a Unit Investment Trust (UIT) in 2022. The firm denied the dispute.
Investors should be aware, however, that firms don’t need to permit an external review before denying a dispute. Investors may be able to recover their funds by seeking out FINRA arbitration following a denial.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must consult the investor’s profile, which describes their risk tolerance, tax status, and overall financial situation.
Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.
What is a Unit Investment Trust?
Unit Investment Trusts (UITs), like mutual funds, generate returns from a portfolio of stocks and bonds. Unlike mutual funds, UITs lock in their securities until the trust reaches maturity, at which point the investor receives their principal back plus any interest after fees.
However, the illiquidity and risky investments of some UITs can make them unsuitable for certain investors.
Background Information
Corey Engelhard 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
- Series 24 – General Securities Principal Examination
Corey Engelhard is a registered broker in 27 states and a registered investment adviser in Florida and Texas.
He has also worked for the following firms:
- Wells Fargo Advisors (CRD#:19616)
- Prudential Securities (CRD#:7471)
- Advest (CRD#:10)
- Atlantic Trading Partners (CRD#:43033)
- First Tryon Securities (CRD#:7336)
- Herzog, Heine, Geduld (CRD#:2186)
Kurta Law Can Help
If you worked with Corey Engelhard 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.