Richard Reames Allegedly Churned Client’s Account

Richard Reames (CRD #: 712401), a broker registered with Robert W. Baird & Company, allegedly executed an excessive number of trades in a client’s account, according to his BrokerCheck record, accessed on January 6, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

On October 14, 2022, an investor alleged that Richard Reames engaged in excessive trading, recommended unsuitable investments that led to losses, and moved her assets to an advisory account without her informed consent. The client seeks $209,724.08 in damages in this pending dispute.

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.

Excessive trading, also known as churning, is quantitatively unsuitable. In other words, a broker’s overall trading activity must suit an investor’s goals as much as individual trades.

Investors who rely on brokers for investment recommendations can seek out FINRA arbitration and potentially recover their losses.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Richard Reames 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 5 – Interest Rate Options Examination
• Series 7 – General Securities Representative Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)

Richard Reames is a registered broker in 16 states and a registered investment adviser in Kentucky.

He has also worked for the following firms:

• J.J.B. Hilliard, W.L. Lyons (CRD#:453)
• Almstedt Brothers (CRD#:31)
• J.C. Bradford & Company (CRD#:1287)

Kurta Law Can Help

If you worked with Richard Reames 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.