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Investor Alleges Joseph Ilg Did Not Act in Best Interest

May 23, 2022 Unsuitable Investments

Joseph Ilg (CRD #: 5980783), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, was involved in an investor dispute, according to his BrokerCheck record, accessed on May 16, 2022. If you want to learn more about Joseph Ilg’s conduct as a broker, keep reading.

Investor Dispute

In a dispute filed on March 2, 2022, an investor alleged that Joseph Ilg's recommendations between September 2020 and March 2022 were not in the client's best interests. This dispute was denied by the firm.

However, investors should be aware that firms do not need to seek an external review before denying disputes. Investors can still pursue FINRA arbitration and potentially recoup their losses following a denial.

Regulation Best Interest (Reg BI)

Regulation Best Interest (Reg BI) requires brokers to make disclosures about conflicts of interest and a clear delineation of whether an adviser is a broker or a Registered Investment Adviser.

FINRA Rule 2111

Investments that are not in an investor’s best interests are, in other words, unsuitable. FINRA Rule 2111 defines suitable investments as securities that have been adequately matched to an investor's profile. These profiles describe investors’ financial situation, investment goals, and other information.

Some types of unsuitable investment include:

  • Investments that come with a high degree of risk, which are not suitable for most investors.
  • Securities that are illiquid, and therefore difficult to sell, which may incur fees for selling early.
  • An excessive number of trades also violates Rule 2111—the fees and commissions incurred by a large number of trades will eat into investors’ returns.

Investors can recover losses caused by unsuitable investment recommendations by seeking FINRA arbitration.

Background Information

Joseph Ilg has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination

Joseph Ilg is a registered broker in 31 states and Puerto Rico. He is also a registered investment adviser in Connecticut, North Carolina, and Texas.

He has also worked for Spartan Capital Securities (CRD#:146251) and NYLife Securities (CRD#:5167).

Kurta Law Can Help

If you worked with Joseph Ilg 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.