David Foreman Allegedly Purchased Unsuitable Investments for Client

David Foreman (CRD #: 6514586), a broker registered with Morgan Stanley, allegedly chose unsuitable investments for a client, according to his BrokerCheck record, accessed on October 9, 2022. Read on if you have questions about his conduct as a broker.

Investor Dispute

On July 21, 2022, an investor alleged that David Foreman purchased unsuitable investments in her accounts in 2022. The client sought $100,000 in damages but the dispute was denied by the firm.

However, investors should be aware that firms don’t need to permit an external review before denying disputes. Investors can still pursue FINRA arbitration after a denial and can potentially recover their losses.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must examine the investor’s profile, which describes the following client characteristics:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Background Information

David Foreman has passed the following exams:

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

David Foreman is a registered broker in 39 states and a registered investment adviser in Florida and Texas.

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

Kurta Law Can Help

If you worked with David Foreman 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.