Karen Cunningham Allegedly Recommended Unsuitable Investment

Karen Cunningham (CRD #: 1134960), a broker registered with Kestra Investment Services, allegedly made an unsuitable investment recommendation, according to her BrokerCheck record, accessed on October 1, 2022. Investors may have also engaged her services through Kestra Advisory Services. If you want to know more about his conduct as a broker, read on.

Investor Disputes

In a dispute filed on August 1, 2022, an investor alleged that Karen Cunningham made an unsuitable investment recommendation to the Trust in Noble Royalty Access Fund IV, LP. The client alleges that the trust was not a sophisticated investor and that Karen Cunningham’s recommendation did not meet the client’s investment objectives.

Additionally, the investor alleges that Karen Cunningham misrepresented the investment and failed to disclose certain information regarding commissions and risks to the trust. The client seeks $150,000 in this pending dispute.

On February 13, 2018, a trustee of an account named Karen Cunningham in undisclosed allegations concerning a bond fund purchased in the account in 2016, a management fee, and a loss in an oil and gas product. This dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without an outside review. Investors may be able to recover their losses after a denial by pursuing FINRA arbitration.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information contained in the investor’s profile, including the following characteristics:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investment will be held)
• Investing experience
• Tax status

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deception, manipulation, and otherwise fraudulent means of influencing investors’ decisions. This includes the misrepresentation or omission of material facts relating to investments.

Background Information

Karen Cunningham 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 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 24 – General Securities Principal Examination

Karen Cunningham is a registered broker in 25 states and a registered investment adviser in Oklahoma.

She has also worked for the following firms:

• NFP Advisor Services (CRD#:42046)
• The Advisors Group (CRD#:14035)
• Mutual Service Corporation (CRD#:4806)
• Lowry Financial Services Corporation (CRD#:7291)
• ManEquity (CRD#:5249)
• Philadelphia Life Asset Planning Company (CRD#:629)
• Southwestern Management & Research Corporation (CRD#:3461)
• New York Life Securities (CRD#:5167)

Kurta Law Can Help

If you worked with Karen Cunningham 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.