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Investor Seeks Six-Figure Damages in Dispute With Donald Rhodes

Donald Rhodes (CRD #: 2813490), a broker registered with American Equity Investment Corporation, allegedly facilitated the purchase of an unsuitable investment, according to his BrokerCheck record, accessed on January 23, 2023. If you want to know more about his alleged conduct as a broker, read on.

Investor Dispute

On November 30, 2022, an investor alleged that Donald Rhodes facilitated their purchase of a $120,000 bond offered by GWG Holdings in April 2021. The client alleged that the bond was unsuitable and that Donald Rhodes failed to sufficiently explain its associated risks.

The client seeks $120,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s age, risk tolerance, and financial goals.

Investors who rely on brokers for investment recommendations can seek out FINRA arbitration and potentially recover their losses.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent tactics to influence the purchase or sale of securities. This includes the misrepresentation or omission of information related to investments, such as their potential risks, fees, or returns.

Background Information

Donald Rhodes has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 22 – Direct Participation Programs Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

Donald Rhodes is a registered broker in Indiana.

Kurta Law Can Help

If you worked with Donald Rhodes 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.