Larry Delhagen Allegedly Engaged in Negligence

Larry Delhagen (CRD #: 2779312), a broker formerly registered with Stifel, Nicolaus & Company, has racked up his sixth investor dispute, according to his BrokerCheck record, accessed on January 6, 2023. 

On November 8, 2022, investors alleged that Larry Delhagen engaged in negligence and misrepresentation. The investors further alleged common law fraud. They are seeking $400,000 in this pending dispute. 

On October 20, 2022, an investor alleged that Larry Delhagen recommended investments that did not align with their objectives. The investor also alleges negligence. They are seeking $200,000. 

What qualifies as broker negligence?

Many kinds of misconduct can qualify as broker negligence. Examples include misrepresentations or omissions of fact, unauthorized trading, and unsuitable investment recommendations.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.

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.

Background Information 

Larry Delhagen 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

Larry Delhagen has worked with the following firms: 

• Stifel, Nicolaus & Company (CRD #: 793)
• Ryan Beck’s & Co. (CRD #: 3248)
• Gruntal & Co. LLC (CRD #: 372)
• WMA Securities (CRD #: 32625) 

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.