Daniel Beech Terminated from Innovation Partners Following FINRA Suspension

Daniel Beech (CRD #: 6169844), a broker formerly registered with Innovation Partners, has been suspended by FINRA, according to his BrokerCheck record, accessed on November 1, 2024. If you want to learn more about Daniel Beech’s conduct as a broker, keep reading.

Termination from Innovation Partners

On July 23, 2024, Daniel Beech was terminated by Innovation Partners due to his suspension from association with FINRA member firms for ten months. His suspension began on August 19, 2024.

Investor Disputes

On September 13, 2024, an investor alleged that Daniel Beech made an unsuitable and misleading investment recommendation. The client seeks $150,000 in this pending dispute.

On February 5, 2024, an investor alleged that Daniel Beech misrepresented an investment. The investor seeks $50,001 in this pending dispute.

A pending dispute filed on November 13, 2023, named Daniel Beech in allegations of unsuitable investment recommendations, misrepresentations and omission of material facts, and violation of federal securities laws. This dispute seeks $100,000.

On October 3, 2022, an investor filed a dispute alleging Daniel Beech made misrepresentations. The client received a settlement of $68,000.

Six disputes, filed from June 27, 2022, to July 19, 2023, name Daniel Beech in allegations involving the suitability rule. One of these remains pending and seeks $115,000 in damages, and the rest were settled for a total of $548,552.99.

Three disputes, filed from April 29, 2022, to April 21, 2023, name Daniel Beech in allegations of negligence. These disputes were settled for a total of $277,500.

Another three disputes, filed from August 27, 2021, to September 14, 2023, made no disclosed allegations but sought reimbursement. These disputes were settled for a collective $319,620.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent tactics to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to their client’s profiles. Investors’ profiles describe their investment goals, risk tolerance, and other characteristics.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

What qualifies as broker negligence?

Many types of broker behavior can qualify as negligent. Common forms of negligence include excessive or unauthorized trading, unsuitable investment recommendations, and making misrepresentations about investments.

Investors who lose money through broker negligence may be able to recover their losses through FINRA arbitration.

Suspension by FINRA

On December 18, 2023, Daniel Beech consented to the entry of findings that he allegedly paid commissions to an unregistered person.

According to an Order Accepting Offer of Settlement by the FINRA Office of Hearing Officers, Daniel Beech allegedly had an agreement with a then-registered individual (Individual A) to use a joint billing code to allow them to both receive commissions on securities recommendations to certain clients. Individual A was allegedly suspended by FINRA and later terminated by his brokerage firm, and did not re-associate with a FINRA member.

Individual A had allegedly also been a registered investment adviser. In April 2016, Daniel Beech allegedly entered into an agreement with Individual A’s registered investment advisory firm to purchase his book of business, allowing Daniel Beech to service certain accounts and requiring he pay the firm a percentage of commissions.

From May 2016 to at least January 2023, Daniel Beech allegedly made direct or indirect commission payments to Individual A totaling at least $636,000. These payments and his agreement with the investment advisory firm were allegedly made without the knowledge or permission of any FINRA member firms.

During this time, Individual A allegedly solicited new brokerage clients for Daniel Beech, communicated with these clients and attended meetings, recommended securities, and maintained investor records for clients serviced under his agreement with Daniel Beech.

The Order of Settlement alleged that Daniel Beech violated FINRA Rules 2040 and 2010.

FINRA Rule 2040

FINRA Rule 2040 prohibits direct or indirect payments to unregistered persons who would be required to be registered under federal securities laws.

FINRA Rule 2010

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

Sanctions

Daniel Beech was fined $10,000 and suspended by FINRA for 10 months. His suspension will run from August 19, 2024, to June 18, 2025. You can read the full Order Accepting Offer of Settlement here.

Background Information

Daniel Beech 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 6 – Investment Company Products/Variable Contracts Representative Examination

He previously worked for the following firms:

• Innovation Partners (CRD#:146344)
• Western International Securities (CRD#:39262)
• Independent Financial Group (CRD#:7717)
• Royal Alliance Associates (CRD#:23131)

Kurta Law Can Help

If you worked with Daniel Beech 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.