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Izhar Shefer Involved in Unsuitability Disputes

Izhar Shefer (CRD #:1759498), a broker formerly registered with APW Capital, is involved in an investor dispute, according to his BrokerCheck record, accessed on January 11, 2022.

According to the allegations filed on October 7, 2021, Izhar Shefer was accused of negligent hiring and retention, breach of fiduciary duty, and unsuitable investment recommendations. The case is still pending.

Settled Unsuitability Disputes

Between 2016 and 2018, Izhar Shefer was involved in multiple settled unsuitability disputes. 

  • Four of these disputes allege Izhar Shefer recommended unsuitable investments. The cases were cumulatively settled for $147,450.17.
  • One Investor dispute alleges Izhar Shefer misrepresented an unsuitable trading strategy. The case was settled for $172,500.

Denied Unsuitability Disputes 

On July 11, 2016, an investor filed an investor dispute against Izhar Shefer alleging unsuitability with respect to investments purchased between April and December 2015. Investors should know that they can still pursue FINRA arbitration and recover their losses following a denial.

Unsuitability and Misrepresentation

Two issues that investors should be aware of are unsuitability and misrepresentation. 

What is Unsuitability?

“Unsuitability” is a term used to describe recommendations and trades that are inconsistent with the customer’s goals and investment profile.

Under FINRA Rule 2111, a customer’s investment profile includes the customer’s:

  • Age
  • Financial situation and needs
  • Tax status
  • Investment objectives
  • Investment experience
  • Risk tolerance.

Brokers should take into account any risk tolerances or goals the person has expressed before making recommendations and take note if those preferences change over time. 

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

What is Misrepresentation?

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest. 

Did you know that any of the following can be considered misrepresentation or omission?

  • Inadequate due diligence concerning security offerings
  • Failure to disclose all material risks
  • Failure to disclose all transaction costs
  • Unrealistic presumptions for investment projections
  • Inaccurate investment performance calculation

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. 

Losses that can be attributed to a stockbroker’s material misrepresentations of facts may result in a viable securities arbitration claim for damages.

Background Information

Izhar Shefer has passed the following exams:

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

Besides APW Capital, Izhar Shefer has also worked with: 

  • Morgan Stanley (CRD#:149777)
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)    
  • Wachovia Securities (CRD#:19616)        
  • Prudential Securities Incorporated (CRD#:7471)
  • Salomon Smith Barney (CRD#:7059)
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
  • Corporate Securities Group (CRD#:11025)

Kurta Law Can Help

If you suffered losses after working with Izhar Shefer, don’t hesitate to contact us today at 877-600-0098 or 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 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.