Darrach Bourke Allegedly Violated Regulation Best Interest
Darrach Bourke (CRD #: 5255413), a broker registered with Emerson Equity, allegedly engaged in negligent conduct, according to his BrokerCheck record, accessed on May 8, 2023. Read on if you have questions about his alleged conduct as a broker.
On February 8, 2023, an investor filed a dispute alleging that Darrach Bourke breached his contract and engaged in negligence, including by making misrepresentations and violating Regulation Best Interest. This dispute is currently pending.
In a dispute filed on March 16, 2016, an investor alleged that Darrach Bourke made unsuitable recommendations of mutual funds. This dispute was settled for an undisclosed amount.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
FINRA Rule 2020
FINRA Rule 2020 prohibits the use of manipulative or deceptive tactics, such as the misrepresentation or omission of material facts, in relation to the purchase and sale of securities.
FINRA Rule 2111 and Regulation Best Interest
FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes their tax status, risk tolerance, and other information.
Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.
What qualifies as broker negligence?
Many types of broker misconduct may qualify as negligence. Common examples include misrepresentations or omissions of material fact, unauthorized trading, and failure to supervise other brokers.
Investors who have lost money through broker negligence may be able to recover their funds by seeking out FINRA arbitration.
On March 6, 2017, Darrach Bourke consented to the entry of findings that he allegedly executed unauthorized trades in the accounts of two clients between January 2012 and October 2014.
A Letter of Acceptance, Waiver & Consent (AWC) alleged that Darrach Bourke discussed investment strategies with these two clients but failed to speak to them or receive written authorization before executing certain transactions.
Further, Stifel, Nicolaus & Company allegedly had not approved these accounts for discretionary trading.
The AWC concluded that these allegations constituted violations of NASD Rule 2150(b) and FINRA Rule 2010.
FINRA Rule 3260
FINRA Rule 3260 forbids brokers from conducting discretionary trading outside of accounts approved in advance by their client and firm.
Darrach Bourke consented to the following sanctions:
- $5,000 fine
- 20-business day suspension
His suspension ran from April 3 to May 1, 2017. You can read a copy of the AWC here.
Darrach Bourke has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 24 – General Securities Principal Examination
Darrach Bourke is a registered broker in six states and a registered investment adviser in California.
He has also worked for the following firms:
- Summit Brokerage Services (CRD#:34643)
- Summit Financial Group (CRD#:109485)
- Stifel, Nicolaus & Company (CRD#:793)
- Stone & Youngberg (CRD#:795)
- UBS Financial Services (CRD#:8174)
Kurta Law Can Help
If you worked with Darrach Bourke and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.