Ernie Kloock Involved in a Preferred Stock Dispute 

Ernie Kloock (CRD #: 3114944), a broker registered with UBS Financial Services, is facing an investor dispute, according to his BrokerCheck record, accessed on August 1, 2023. For more details on his alleged conduct as a broker, keep reading. 

On May 2, 2023, an investor’s attorney alleged that Ernie Kloock made unsuitable recommendations to over-concentrate an investor’s portfolio in preferred shares of stock. The attorney further alleged that the risks associated with preferred shares of stock were not explained and the instructions to sell the stock were not followed, among other instructions. The investor is seeking $206,000. 

What are Preferred Stocks? 

Preferred stocks pay investors dividends, but they may be callable, meaning that issuers can redeem them after a predetermined period. Other factors can make these unsuitable investments: Preferred shares may not come with a maturity date and the issuer’s creditworthiness may affect the preferred shares’ value. 

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. This includes the misrepresentation or omission of material information, such as an investment’s potential risks or limitations.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles contain information such as investors’ age, risk tolerance, and investment goals.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Failure to follow instructions may violate FINRA Rule 2010. 

Background Information 

Ernie Kloock 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 7 General Securities Representative Examination 

He is a registered broker in 32 states and is a registered investment adviser in New Jersey and Texas. 

Ernie Kloock has registered with the following firms: 

• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
• Banc of America Investment Services (CRD #: 16361) 
• Quick & Reilly (CRD #: 11217) 
• Morgan Stanley DW (CRD #: 7556) 

Kurta Law Can Help

If you worked with Ernie Kloock 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.