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Investors Allege Michael Valenta Gave Unsuitable Investment Recommendations

Michael Valenta (CRD #: 1386978), a broker registered with Cambridge Investment Research, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on August 21, 2022. Investors may have also worked with him through Cambridge Investment Research Advisors. If you want to know more about his conduct as a broker, keep reading.

Investor Disputes

On July 18, 2022, an investor alleged that Michael Valenta made unsuitable investment recommendations. This dispute is pending.

Two other pending disputes, filed on May 2 and June 21, 2022, allege that Michael Valenta recommended investments in order to generate high commissions and fees, and overconcentrated investors’ accounts in these investments. One of these disputes seeks $800,000 in damages.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to use the information in an investor’s profile to determine whether an investment fits their client’s financial goals. These profiles describe an investor’s age, tax status, risk tolerance, and other characteristics.

Suitability also applies to investment strategies. Overconcentration in one stock or sector, for instance, introduces a degree of risk that may be unsuitable. Portfolios with a diverse array of stocks are more likely to generate a return. 

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Michael Valenta 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

Michael Valenta is a registered broker in 28 states and a registered investment adviser in Colorado and Texas.

He has also worked for the following firms:

  • Valenta Capital Management (CRD#:143270)
  • RMIN Securities (CRD#:47274)
  • Securities America (CRD#:10205)
  • WMA Securities (CRD#:32625)
  • Liberty Securities (CRD#:14416)
  • Pamco Securities and Insurance Services (CRD#:11028)
  • Farwest Securities (CRD#:22687)
  • Financial Programs (CRD#:289)
  • First Investors Corporation (CRD#:305)

Kurta Law Can Help

If you worked with Michael Valenta 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.