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Larry Delhagen Allegedly Recommended Unsuitable Investments

Jun 30, 2022 General

Larry Delhagen (CRD #: 2779312), a broker formerly registered with Stifel, Nicolaus & Company, has racked up his fifth investor dispute, according to his BrokerCheck record, accessed on June 22, 2022.

On February 11, 2022, an investor alleged that Larry Delhagen recommended investments that did not suit his investor’s needs. The dispute was denied, but investors should know that they can still pursue FINRA arbitration and recover losses following a denial.

More Investor Disputes

Three other disputes alleged that Larry Delhagen recommended unsuitable investments. These disputes collectively settled for $327,500.

Suitability Rule

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age. 

Securities may be unsuitable because they are high-risk or illiquid, leading to losses for the investor. They may also be quantitatively unsuitable, meaning that the broker executed an excessive number of trades, cutting into the clients’ returns with trading fees.

Investment strategies must also meet the requirements of suitability. A common unsuitable investment strategy is over-concentration, which can increase the risk for an investor beyond what is appropriate for their financial goals.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Kurta Law Can Help

If you worked with Larry Delhagen 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.