Victim of Financial Fraud? Call Now

Rafe Klein is Facing a FINRA Investigation

Rafe Klein (CRD #: 2865823), a broker registered with David Lerner Associates, is the subject of a FINRA investigation. This disclosure appears on his BrokerCheck record, accessed on June 4, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investigation 

On March 18, 2024, FINRA made a preliminary determination to recommend that disciplinary action be brought against Rafael Scott Klein following allegations that he violated FINRA Rule 2111 and FINRA Rule 2010 by recommending investments in Energy 11, L.P., and Energy 12, L.P. without a reasonable basis to believe the investments were suitable based on their investor profiles. 

FINRA further alleged a violation of FINRA Rule 4511 when the broker allegedly caused the member firm to maintain inaccurate books and records regarding investor profiles. 

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable

FINRA 4511 – Books and Records

FINRA Rule 4511 requires firms to keep accurate and up-to-date books and records.

Settled Investor Disputes

There are three investor disputes on Rafe Klein’s record alleging that he recommended unsuitable investments. These disputes were collectively settled for approximately $155,270. 

Background Information 

Rafe Klein 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 25 NYSE Trading Assistant Examination 
  • Series 7 General Securities Representative Examination 

He is a registered broker in 23 states and is a registered investment adviser in Connecticut. 

During his 26 years of experience, Rafe Klein has registered with six firms: 

  • David Lerner Associates (CRD #: 5397) 
  • Spirit of American Management (CRD #: 110233) 
  • Farina & Associates (CRD #: 32830) 
  • Investec Ernst & Company (CRD #: 266) 
  • GKN Securities Corp (CRD #: 19415) 
  • HD Brous & Co. (CRD #: 22062) 

Kurta Law Can Help 

If you have worked with Rafe Klein 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.