Victim of Financial Fraud? Call Now

Kirk Badii Embroiled in $3 Million Investor Dispute

Apr 1, 2022 Elder Financial Abuse

Kirk Badii (CRD #:5829768), a broker and investment advisor registered with Independent Financial Group, is involved in a pending investor dispute, according to his BrokerCheck record accessed on March 26, 2022. 

Investor Allegations

On December 27, 2021, an elderly investor alleged that Kirk Badii mismanaged her accounts by recommending unsuitable alternative investments and failing to fully explain the risks associated with those investments. The investor, a homemaker, further alleged that Kirk Badii established credit lines to qualify for those investment purchases and used the credit lines to make distributions to the investor’s family. The family allegedly believed those distributions to be income generated from the investments. 

The allegations further state that Kirk Badii established additional accounts where he executed unauthorized trades. The investor is seeking $3,000,000; the dispute is pending. 

FINRA Rules and Regulations 

Brokers who recommend securities are subject to FINRA rules and regulations. 

  • FINRA Rule 2111 requires registered brokers to have a "reasonable basis" to believe that a transaction or investment strategy suits their client's needs. An investment strategy might also be unsuitable if the securities are over-concentrated in a particular stock or sector. 
  • FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or persuading individuals to buy investments with false statements about their potential benefits. 
  • FINRA Rule 3260 requires that brokers have authorization before executing trades in a non-discretionary account.
  • Kirk Badii's alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor. 

Denied Disputes 

There are two disputes from 2020 that alleged Kirk Badii recommended unsuitable investments. 

One dispute in 2019 alleged that a loan was made on behalf of a client without the client’s authorization. 

All three of the disputes were denied, but investors should know that a denial is not necessarily the final word on the dispute. Firms can deny a dispute without any external review. Investors can still recover their losses following a denial. 

Settled Dispute

On April 12, 2019, an investor filed a dispute alleging Kirk Badii recommended unsuitable, illiquid investments. The case settled for $475,000.

Employment Termination Details

On August 7, 2018, UBS Financial Services fired Kirk Badii after the following allegations:

  • Violating the firm's social media policy by blocking the management's ability to monitor his social media
  • Violating the firm's anti-money laundering policy in connection with the onboarding of certain clients and prospects.

Background Information

Kirk Badii has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Kirk Badii is a registered broker in 19 states; he is also a registered investment advisor in Texas and California.

Besides UBS Financial Services and Independent Financial Group, Kirk Badii has also worked with the following firms:

  • Cantella & Co. (CRD#:13905)
  • Raymond James Financial Services Advisors (CRD#:149018)
  • Credit Suisse Securities (USA) (CRD#:816)

Kurta Law Can Help

If you suffered losses after working with Kirk Badii, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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 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.