Daniel Kaplan Involved in SEC Complaint Alleging Fraud and Misappropriation

Daniel Kaplan (CRD #: 6609015), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith, is involved in a pending SEC complaint, according to his BrokerCheck record, accessed on May 24, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Pending SEC Complaint

On March 3, 2023, the Securities and Exchange Commission filed a civil complaint alleging that Daniel Kaplan and another broker misappropriated more than $5 million from at least 60 of their investment advisory clients.

According to the SEC, Daniel Kaplan was allegedly associated with an investment advisory firm from May 2018 until his termination in July 2021, then continued to act as an investment adviser to certain clients after leaving his firm.

Daniel Kaplan allegedly overcharged these clients by fraudulently inflating the fees listed in their advisory agreements without their knowledge or consent from at least May 2018 through July 2021.

From approximately May 2018 through October 2022, he allegedly misappropriated clients’ funds by applying fraudulent charges to their clients’ credit cards and bank accounts. These charges included additional advisory fees and purported investments.

Daniel Kaplan allegedly also falsified documents, made misrepresentations to clients, and made “Ponzi-like payments” to clients to conceal these activities.

The SEC alleges that, through this misconduct, Daniel Kaplan violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

This civil complaint is currently pending.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 extends this to include fraudulent schemes, untrue statements, and omissions of fact.

Investment Advisers Act of 1940

Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Termination from IHT Wealth Management

On July 16, 2021, Daniel Kaplan was fired from IHT Wealth Management following an SEC complaint filed by an investor. The client alleged that he was charged adviser fees in the 2.5-3% range when his adviser agreement stated his fees would be 1% of his account value.

FINRA Rule 2010

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

Termination from Merrill Lynch, Pierce, Fenner & Smith

On March 8, 2018, Daniel Kaplan was fired from Merrill Lynch, Pierce, Fenner & Smith for allegedly engaging in misconduct concerning the use of client credentials to access their accounts.

Background Information

Daniel Kaplan has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691) and Morgan Stanley (CRD#:149777).

Kurta Law Can Help

If you worked with Daniel Kaplan 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.