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Investor Alleges Richard Maus Recommended Unsuitable Investment Strategy

Jun 6, 2022 Unsuitable Investments

Richard Maus (CRD #: 4810595), a broker registered with NYLIFE Securities, was involved in a recent dispute regarding suitability, according to his BrokerCheck record, accessed on May 28, 2022. If you want to learn more about Richard Maus’s conduct as a broker, keep reading.

Investor Dispute

On February 17, 2022, an investor alleged that, in December 2021, Richard Maus recommended he transfer his funds from a variable annuity to a managed account. The investor alleged that this recommendation was unsuitable and not consistent with his risk tolerance. This dispute was denied by the firm. However, firms can deny disputes without any external review, and investors can still pursue FINRA arbitration to recover their losses following a denial.

Variable annuities are complex investments and often come with high fees. Their returns depend on their underlying securities’ performance, making them potentially high-risk investments. If investors withdraw funds or execute exchanges, they may face penalties, since variable annuities are designed to be long-term investments. 

FINRA Rule 2111

FINRA Rule 2111 requires that brokers’ investment recommendations fit investors’ profiles. Brokers must take into account an investor’s risk tolerance, age, financial situation, and other information contained in the client’s profile.

Investment strategies must also be suitable for investors given the characteristics described in their profiles. Investors who rely on brokers for investment and strategy recommendations can potentially recover their losses by pursuing FINRA arbitration.

Background Information

Richard Maus 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

Richard Maus is a registered broker in seven states and a registered investment adviser in Texas.

Kurta Law Can Help

If you worked with Richard Maus 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.