Drew Reinhardt Allegedly Recommended Excessive Trades

Drew Reinhardt (CRD #: 1457827), a broker registered with Morgan Stanley, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on March 15, 2024. Keep reading if you have questions regarding these disputes. 

Investor Dispute

On January 11, 2024, an investor alleged that Drew Reinhardt recommended excessive mortgage-backed securities. The investor further alleged that the broker recommended excessive trades for the sake of their commissions. The investor sought $54,273 but the dispute was denied. Investors should know, however, that firms can deny disputes without any external review. 

On June 20, 2019, an elderly client’s attorney alleged that Drew Reinhardt recommended that she maintain an unsuitable short position in her deceased husband’s account. The investor sought $110,000 and the dispute was settled for $60,000. “Shorting” a stock is a type of options trading. 

On August 11, 2018, an attorney for a successor trustee alleged that Drew Reinhardt made an unsuitable recommendation for a former trustee to sell short shares of Autozone. The dispute was settled for $49,999. 

FINRA Rule 2111 – Unsuitable Options Trading

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s risk tolerance. Options trading strategies are often unsuitable because they are speculative and therefore likely to lose money. Depending on what type of options contract the investor buys, the investor is placing a bet that the price of a stock will either increase or decrease.

Excessive Trading

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must suit an investor’s needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.”

Background Information 

Drew Reinhardt has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 3 National Commodity Futures Examination 
• Series 7 General Securities Representative Examination

He is a registered broker in 17 states and is a registered investment adviser in California and Pennsylvania. 

During his 38 years of experience, Drew Reinhardt has registered with the following firms: 

• Morgan Stanley (CRD #: 149777) 
• Morgan Stanley & Co. (CRD #: 8209) 
• Morgan Stanley (CRD #: 7556) 
• Prudential Securities Incorporated (CRD #: 7471) 

Kurta Law Can Help 

If you have worked with Drew Reinhardt and you have concerns about your investments, do not hesitate to contact us 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.