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Darwin Dees Allegedly Gave Unsuitable Investment Recommendations

Jan 5, 2023 Unsuitable Investments

Darwin Dees (CRD #: 4662702), a broker registered with Kovack Securities, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on December 27, 2022. Investors may have also worked with him through Kovack Advisors. If you have questions about his alleged conduct as a broker, keep reading.

Investor Dispute

On November 1, 2022, an investor alleged that Darwin Dees made unsuitable investment recommendations and recommended selling certain positions, resulting in large capital gains taxes. The client seeks $162,000 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Some common violations of this rule include:

  • Recommendations of high-risk or illiquid investments. These investments may lead to losses or high fees for the investor.
  • Excessive trading, which violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
  • Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk

Background Information

Darwin Dees has passed the following exams:

  • Series 65 Uniform Investment Adviser Law Examination 
  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 7 – General Securities Representative Examination

Darwin Dees is a registered broker in Florida, Georgia, and Kentucky. He is also a registered investment adviser in Florida and Georgia.

He has also worked for the following firms:

  • Cape Investment Advisory (CRD#:146384)
  • Cape Securities (CRD#:7072)
  • GWN Securities (CRD#:128929)
  • Cape Securities (CRD#:7072)
  • ING Financial Partners (CRD#:2882)
  • USAllianz Securities (CRD#:40875)

Kurta Law Can Help

If you worked with Darwin Dees 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.