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Investors Allege Jack Burk Gave Unsuitable Investment Recommendations

Feb 14, 2023 Unsuitable Investments

Jack Burk (CRD #: 4814841), a broker registered with Arete Wealth Management, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on February 7, 2023. Investors may have also engaged his services through Arete Wealth Advisors. If you want to know more about his alleged conduct as a broker, read on.

Investor Dispute

On October 4, 2022, multiple investors filed a dispute alleging Jack Burk made unsuitable investment recommendations. The clients seek $50,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to use the information in an investor’s profile when making investment recommendations. Investors’ profiles describe characteristics like their age, risk tolerance, and investment goals.

Common violations of this rule include:

  • Recommendations of high-risk investments, which are more likely to lose money.
  • Recommendations of illiquid investments, which can be difficult to sell on short notice and come with high fees when investors cash out early.
  • Excessive trading, which is quantitatively unsuitable. An excessive number of trades can generate fees and commissions that significantly eat into investors’ returns.
  • Recommendations of unsuitable investment strategies. For instance, over-concentrating a client’s account in one sector can introduce an unsuitable degree of risk.

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

Background Information

Jack Burk has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 79TO – Investment Banking Registered Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Jack Burk is a registered broker in 16 states and a registered investment adviser in Florida and Illinois.

He has also worked for Ameriprise Financial Services (CRD#:6363) and IDS Life Insurance Company (CRD#:6321).

Kurta Law Can Help

If you worked with Jack Burk and you have concerns about your investments, please contact us today at 877-600-0098 or 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.