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Karen Burkhart Allegedly Failed to Supervise

Aug 19, 2022 Failure to Supervise

Karen Burkhart (CRD #: 1791881) a broker formerly registered with Janney Montgomery Scott, resigned from her firm, according to her BrokerCheck record, accessed on August 12, 2022. If you have questions about Karen Burkhart’s conduct as a broker, keep reading.

Resignation from Janney Montgomery Scott

On May 4, 2022, Karen Burkhart was permitted to resign from Janney Montgomery Scott after allegedly failing to supervise certain activities in her role as Complex Manager. Under her supervision, a broker and the Branch Operations Manager allegedly processed “problematic” trading activity that she did not directly review.

FINRA Rule 3110

Failure to supervise violates FINRA Rule 3110, which requires firms to establish and maintain systems of supervision over their employees. Firms must appoint adequately trained or experienced supervisors to review trading activity and ensure that firms maintain compliance with FINRA rules.

Background Information

Karen Burkhart 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 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination
  • Series 23 – General Securities Principal Sales Supervisor
  • Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module) 

She previously worked for the following firms:

  • Janney Montgomery Scott (CRD#:463)
  • Wells Fargo Clearing Services (CRD#:19616)
  • USAA Financial Advisors (CRD#:129035)
  • Pruco Securities (CRD#:5685)
  • Citigroup Global Markets (CRD#:7059)
  • Intervest Securities (CRD#:18235)

Kurta Law Can Help

If you worked with Karen Burkhart 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.