Investors Allege Robert Ginsberg Gave Unsuitable Investment Recommendations

Robert Ginsberg (CRD #: 5177531), a broker registered with LPL Financial, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on May 13, 2025. Keep reading for details about his alleged conduct as a broker.

Investor Disputes

On February 27, 2025, an investor alleged that Robert Ginsberg made investments that were unsuitable for their investment objectives and risk tolerance in 2022. This dispute is currently pending.

In a dispute filed on April 29, 2019, an investor alleged that Robert Ginsberg recommended unsuitable real estate investment trusts (REITs) and Business Development Companies (BDCs). The client sought $500,000 in damages and received a settlement of $150,000.

On November 21, 2017, several investors filed a dispute naming Robert Ginsberg in allegations of the following:

• Negligence
• Lack of suitability
• Failure to supervise
• Misrepresentation
• Breach of the covenant of good faith and fair dealing
• Violation of FINRA Rule 2020
• Violation of Section 206 of the Investment Advisers Act of 1940
• Violation of  the Connecticut Uniform Securities Act

These allegations were made in relation to non-traded REITs, penny stocks, and oil and gas investments. The clients sought $1 million and damages and received a settlement of $350,000, finalized by an arbitration award.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the investor’s profile, which contains information about their tax status, age, and risk tolerance.

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

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. The misrepresentation or omission of material facts violates this rule.

Investment Advisers Act of 1940

Section 206 of the Investment Advisers Act prohibits the use of deceptive, manipulative, and otherwise fraudulent schemes and practices by investment advisers.

What are blue sky laws?

Blue sky laws are state-level regulations that give investors an added layer of protection against securities fraud. They frequently also define what investments qualify as securities in the state.

Background Information

Robert Ginsberg has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Combined State Law Examination – Series 66

Robert Ginsberg is a registered broker in 12 states and the District of Columbia. He is also a registered investment adviser in Connecticut and Texas.

He has also worked for the following firms:

• Woodbury Financial Services (CRD#:421)
• Investors Capital Advisory (CRD#:30613)
• Investors Capital Corporation (CRD#:30613)

Kurta Law Can Help

If you worked with Robert Ginsberg 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 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.