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Investors Allege Daniel Klemm Recommended High-Risk Investment

Daniel Klemm (CRD #: 6344942), a broker registered with Centaurus Financial, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on May 25, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

On March 27, 2023, several investors alleged that Daniel Klemm made recommendations of a high-risk investment in 2019. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. An investor’s profile contains information about their age, tax status, and financial goals.

  • High-risk and illiquid investments are frequently unsuitable due to their risk and difficulty to sell in the near future, respectively.
  • Trading activity can also be quantitatively unsuitable, meaning that the broker executed an excessive number of trades. This generates trading fees and commissions that can severely reduce the client’s returns.
  • Investment strategies must also serve investors’ goals. Overconcentration in a single sector or stock, for example, is often an unsuitable investment strategy.

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Daniel Klemm 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

Daniel Klemm is a registered broker in 19 states and a registered investment adviser in 13 states.

Kurta Law Can Help

If you worked with Daniel Klemm 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. 

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