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Investor Names Richard Niekrash in Dispute Alleging Negligence

Sep 7, 2022 Excessive Trading

Richard Niekrash (CRD #: 4812078), a broker registered with Benjamin F. Edwards & Company, allegedly engaged in negligent conduct, according to his BrokerCheck record, accessed on August 19, 2022. Read on to learn more about his conduct as a broker.

Investor Disputes

On May 10, 2022, an investor alleged that Richard Niekrash’s recommendation that the client hold unidentified securities in his account was negligent. The client alleges this conduct occurred between January 1, 2021, and the date of filing. This dispute was denied by the firm.

Investors should be aware, however, that firms can deny disputes without an external review. Investors can still seek out FINRA arbitration following a denial and potentially recover their funds.

In a dispute filed on September 28, 2018, an investor alleged that Richard Niekrash engaged in excessive and unauthorized trading, breached his contract, acted negligently, committed unspecified breaches of suitability,  and engaged in unspecified fraudulent practices and violations of securities law between January 2014 and March 2017. The client sought $377,867.96 in damages and received a settlement of $275,000.

What is broker negligence?

Many forms of broker conduct can qualify as negligent, including misrepresenting or omitting material facts about investments, executing excessive or unauthorized trades, and failing to supervise other brokers. Investors who lose money through broker negligence may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information contained in an investor’s profile, such as their age, tax status, and other investments.

Brokers must also take this information into account when recommending investment strategies or engaging in discretionary trading. When a broker executes an excessive number of trades in a client’s account, it can generate so many fees and commissions that the client may not make a profit on the trades at all.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside discretionary accounts, pre-approved for discretionary trading by the firm and the client.

Background Information

Richard Niekrash has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

Richard Niekrash is a registered broker in 18 states and a registered investment adviser in New Jersey.

He has also worked for the following firms:

  • Wells Fargo Advisors (CRD#:19616)
  • A. G. Edwards & Sons (CRD#:4)
  • UBS Financial Services (CRD#:8174)
  • AXA Advisors (CRD#:6627)

Kurta Law Can Help

If you worked with Richard Niekrash and you have concerns about your investments, please contact us today at 877-600-0098 or 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 the firm only earns a fee if our securities attorneys recover money on your behalf.