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Investor Alleges Michael Zahm Misrepresented an Unsuitable REIT

May 20, 2022 Misrepresentation

Michael Zahm (CRD #: 6381591), a broker registered with Voya Financial Advisors, was involved in a recent dispute, according to his BrokerCheck record, accessed on May 13, 2022. If you have questions about Michael Zahm’s conduct as a broker, keep reading.

Investor Dispute

In a dispute filed on March 14, 2022, an investor alleges that, in 2015, Michael Zahm misrepresented an investment in a real estate investment trust (REIT) that was unsuitable for the client. The firm denied this dispute.

However, firms do not need to allow any outside review when denying disputes. Investors can still seek out FINRA arbitration after a denial and potentially recover their losses.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to match investors’ profiles. An investor’s profile contains information such as their tax status, risk tolerance, and financial situation.

Investors can recover losses caused by unsuitable investment recommendations through FINRA arbitration.

FINRA Rule 2020

Many kinds of unethical conduct are banned by FINRA Rule 2020, which prohibits the use of manipulative, deceptive, and fraudulent tactics to influence the purchase and sale of securities.

This includes the misrepresentation and omission of information when informing a client about an investment.

What is a real estate investment trust (REIT)?

A real estate investment trust (REIT) allows investors to pool their funds together in a real estate portfolio and earn dividends without the burden of managing the properties themselves. However, REITs may be unsuitable for many investors due to their lack of liquidity and other drawbacks.

Background Information

Michael Zahm has passed the following exams:

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

Michael Zahm is a registered broker in California and Indiana. He is also a registered investment adviser in Indiana.

He previously worked for AXA Advisors (CRD#:6627).

Kurta Law Can Help

If you worked with Michael Zahm 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.