Michael Krumholz Allegedly Recommended a High-Commission Investment
Michael Krumholz (CRD #: 1977128), a broker registered with Fortune Financial Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 15, 2024. Details concerning this dispute are provided below.
Investor Allegations
On April 2, 2024, an investor dispute alleged that Michael Krumholz recommended an investment meant to generate high commissions and fees. The investor alleged that the investors were deprived of the ability to generate reasonable returns that would have been generated in a diversified portfolio.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.
Some common violations of this rule include:
- Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.”
- Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
- Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.
Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.
Background Information
Michael Krumholz has passed the following exams:
- Series 65 Uniform Investment Adviser Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- Series 99TO Operations Professional 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 Representative Examination
- Series 26 Investment Company Products / Variable Contracts Principal Examination
He is a registered broker in 12 states and is a registered investment adviser in Pennsylvania and Texas.
During his 34 years of experience, Michael Krumholz registered with 12 firms. These are the four most recent:
- Fortune Financial Services (CRD #: 42150)
- Perigon Wealth Management (CRD #: 131037)
- Prudeo Partners (CRD #: 113961)
- LPL Financial (CRD #: 6413)
Kurta Law Can Help
If you have worked with Michael Krumholz and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 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.