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Karl Klingmann is the Subject of a Conservation Easement Dispute

Karl Klingmann (CRD #: 4268378), a broker registered with Kovack Securities, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on June 21, 2024. Details concerning this dispute are provided below. 

Investor Allegations 

On April 11, 2024, an investor alleged that Karl Klingmann recommended conservation easements that resulted in tax liabilities. 

What are Conservation Easements? 

Conservation easements limit land development and offer the purchaser a federal income tax deduction. However, the IRS has labeled certain conservation easements as abusive tax shelters, which may result in an unexpected tax burden for investors. 

High Standards of Commercial Honor 

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Recommending conservation easements that result in tax liabilities may violate this rule. 

Background Information 

Karl Klingmann 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

He is a registered broker in 15 states and is a registered investment adviser in Ohio and Pennsylvania. 

During his 23 years of experience, Karl Klingmann has registered with the following firms: 

  • Kovack Securities (CRD #: 44848) 
  • Kovack Advisors (CRD #: 140808) 
  • Resource Horizons Group (CRD #: 104368) 
  • Pan-American Financial Advisers (CRD #: 15578) 
  • MML Investors Services (CRD #: 10409) 

Kurta Law Can Help 

If you have worked with Karl Klingmann and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that 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. Do not let securities fraud go unchecked. Start your recovery process today.