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David Adams Involved in Two Pending Unsuitability Disputes

Mar 16, 2022 Unsuitable Investments

David Adams (CRD #: 1575083), a broker and investment advisor registered with Ameriprise Financial Services, is facing two pending unsuitability disputes, according to his BrokerCheck record, accessed on March 2, 2022. 

Investor Allegations

In 2021 and 2020, David Adams was involved in investor disputes, both alleging unsuitable investment recommendations. The investors are seeking $250,000 and $100,000, respectively. 

FINRA Rule 2111

FINRA Rule 2111 requires financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy is suitable for their client. Investments may be unsuitable because they do not align with the investor's financial goals, investing experience, age, or risk tolerance.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended period of time and may be costly to cash out.
  • Securities must also be quantitatively suitable, meaning that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves.

A violation of FINRA Rule 2111 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to "observe high standards of commercial honor and just and equitable principles of trade."

Background Information

David Adams has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • Series 65 - Uniform Investment Adviser Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination
  • Series 24 - General Securities Principal Examination

He is a registered broker in 18 states and is a registered investment advisor in Texas and California.

Besides Ameriprise Financial Services, David Adams has also worked with the following firms:

  • Sagepoint Financial (CRD#:133763)
  • American General Securities Incorporated (CRD#:13626)
  • Franklin Financial Services Corporation (CRD#:5435)

Kurta Law Can Help

If you have worked with David Adams and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.