Edward Kaufman Allegedly Engaged in Excessive and Unsuitable Trading

Edward Kaufman (CRD #: 2774733), a broker registered with Davenport & Company, allegedly engaged in unsuitable and excessing trading, according to his BrokerCheck record, accessed on June 13, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Investor Dispute

On May 18, 2023, an investor alleged that Edward Kaufman, as a fiduciary trader, failed to follow instructions to trade conservatively. He allegedly invested the client in stocks that were unsuitable given their risk tolerance and failed to consult them about these stocks.

Further, Edward Kaufman allegedly engaged in excessive trading and sold assets when the market was “low.” The client sought $69,000 in damages but the dispute was denied by the firm.

However, investors should know that firms can deny disputes without an external review. Investors can still pursue FINRA arbitration following a denial and may be able to recoup their losses.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes characteristics such as their tax status, risk tolerance, and age.

Trading activity can also be quantitatively unsuitable. For example, executing an excessive number of trades generates trading fees and commissions that can reduce clients’ returns so severely that the investor doesn’t make any profit.

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

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Edward Kaufman 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 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination

Edward Kaufman is a registered broker in 16 states and the District of Columbia. He is also a registered investment adviser in Texas and Virginia.

He has also worked for the following firms:

• Truist Advisory Services (CRD#:283390)
• Truist Investment Services (CRD#:17499)
• BB&T Securities (CRD#:142785)
• Scott & Stringfellow (CRD#:6255)
• Scott & Stringfellow (CRD#:3309)

Kurta Law Can Help

If you worked with Edward Kaufman 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.