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Investor Alleges David Monheit Misappropriated Funds

Oct 28, 2022 Unauthorized Trading

David Monheit (CRD #: 4586091), a broker registered with Avantax Investment Services, allegedly misappropriated a client’s funds, according to his BrokerCheck record, accessed on October 14, 2022. Investors may have also worked with him through Avantax Advisory Services. If you want to know more about his conduct as a broker, read on.

Investor Dispute

On July 13, 2022, an investor alleged that David Monheit misappropriated the non-qualified cash that had been deposited into her managed wrap account by investing the funds into the market in September 2021. The client alleged that, though the wrap account was discretionary, David Monheit acted without her authorization.

Wrap accounts are managed accounts that come with a flat fee. 

The client seeks $51,000 in damages in this pending dispute.

FINRA Rule 3260

FINRA Rule 3260 forbids brokers from executing discretionary trades outside accounts authorized for discretionary trading by their client and firm. Even in discretionary accounts, brokers must still follow investors’ instructions and their chosen investment strategies.

Background Information

David Monheit has passed the following exams:

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

David Monheit is a registered broker in 25 states and a registered investment adviser in Arizona.

He has also worked for the following firms:

  • 1st Global Advisors (CRD#:111133)
  • 1st Global Capital (CRD#:30349)
  • Mony Securities Corporation (CRD#:4386)
  • Trusted Securities Advisors Corporation (CRD#:24049)

Kurta Law Can Help

If you worked with David Monheit 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.