David Smith Named in Dispute Alleging Fraud and Violations of Securities Laws
David Smith (CRD #: 850797), a broker registered with Intervest International Equities Corporation, is involved in a pending dispute, according to his BrokerCheck record, accessed on April 28, 2023. Investors may have also worked with him through Intervest International. Read on to learn more about his alleged conduct as a broker.
In a dispute filed on March 1, 2023, an investor named David Smith in allegations of the following:
- Violations of state and federal securities laws
- Common law fraud
- Misrepresentations and omissions
- Unsuitable investment recommendations
- Violation of Regulation Best Interest
- Failure to supervise
- Breach of contract
The client seeks $701,211.32 in this pending dispute.
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 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.
FINRA Rule 2111 and Regulation Best Interest
FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe characteristics such as their age, risk tolerance, and tax status.
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.
FINRA Rule 3110
FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.
What qualifies as broker negligence?
Many types of broker misconduct may qualify as negligence, from omitting material facts to executing unauthorized trades. Investors who have lost money through broker negligence may be able to recover their funds by seeking out FINRA arbitration.
David Smith has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- Series 99TO – Operations Professional Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 1 – Registered Representative Examination
- Series 24 – General Securities Principal Examination
David Smith is a registered broker in 14 states and a registered investment adviser in Florida, Iowa, Missouri, Nevada, and North Carolina.
He has also worked for the following firms:
- Security Distributors (CRD#:3336)
- Integrated Resources Equity Corporation (CRD#:6403)
- Financial Planners Equity Corporation (CRD#:7420)
- Cornerstone Financial Services (CRD#:953)
Kurta Law Can Help
If you worked with David Smith and you have concerns about your investments, please contact us today at 877-600-0098 or email@example.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.