Joseph Weinbauer Allegedly Misrepresented Unsuitable Investments

Joseph Weinbauer (CRD #: 2714070), a broker registered with Berthel, Fisher & Company Financial Services, allegedly misrepresented investments to clients, according to his BrokerCheck record, accessed on August 21, 2022. Investors may have also worked with him through BFC Planning. 

Investor Dispute

On May 5, 2022, an investor alleged that Joseph Weinbauer misrepresented an unsuitable investment purchased in 2014, and overconcentrated the client’s account in that investment. The client also alleged Berthel, Fisher & Company Financial Services failed to conduct due diligence regarding this investment and failed to supervise Joseph Weinbauer’s activities. 

In a dispute filed on July 7, 2021, several investors named Joseph Weinbauer in allegations of unsuitable recommendations, misrepresentations, negligent management, and overconcentration of certain investments, including “non-conventional investments.” The clients also made additional, unspecified claims. They sought $215,000 in damages and received a settlement of $190,000.

FINRA Rule 2020

The misrepresentation of investments violates FINRA Rule 2020, which bans the use of deception, manipulation, and other fraudulent means of influencing the purchase and sale of securities.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to investors’ profiles, which contain information about investors’ age, risk tolerance, and financial goals.

Investment strategies must also be suitable for the client. Overconcentrating an investor’s portfolio in a certain sector or security is often an unsuitable investment strategy due to the degree of risk involved.

Investors who feel their losses are the result of unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires firms to establish systems of supervision in order to maintain their compliance with securities regulations. This includes establishing Written Supervisory Procedures (WSPs) and ensuring that supervisors are appropriately trained or experienced for their roles.

Background Information

Joseph Weinbauer 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
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Joseph Weinbauer is a registered broker in 20 states and a registered investment adviser in Missouri.

He has also worked for the following firms:

• National Planning Corporation (CRD#:29604)
• American General Securities (CRD#:13626)
• Franklin Financial Services (CRD#:5435)

Kurta Law Can Help

If you worked with Joseph Weinbauer 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.