Investor Alleges Misrepresentation in Dispute with Richard Eden

Richard Eden (CRD #: 2145727), a broker registered with David Lerner Associates, allegedly made misrepresentations, according to his BrokerCheck record, accessed on November 15, 2024. If you have questions about his alleged conduct as a broker, keep reading.

Investor Dispute

On October 8, 2024, an investor alleged that Richard Eden violated the suitability rule and made misrepresentations/omission with regard to an investment. The client seeks $95,000 in damages in this pending dispute.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of fraudulent tactics in relation to the purchase and sale of securities. This includes misrepresenting or omitting material facts about investments, such as their potential risks and returns.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

Some common violations of this rule include:

• Recommendations of high-risk investments, which are more likely to lose money for the client.
• Recommendations of illiquid investments, which can incur high fees if the investor attempts to sell them too soon.
• Excessive trading, which is quantitatively unsuitable. This means the broker executed a number of trades beyond what was appropriate for the investor’s profile.
• Recommendations of unsuitable investment strategies. Overconcentration of securities in a certain stock or sector, for example, is unsuitable for many investors due to its degree of risk.

Investors who lose money through unsuitable investment recommendations can seek out FINRA arbitration and potentially recover their funds.

Background Information

Richard Eden has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Richard Eden is a registered broker in 22 states.

Kurta Law Can Help

If you worked with Richard Eden 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.