Robert Li Allegedly Recommended Unsuitable Investment Strategies

Robert Li (CRD #: 4068255), a broker registered with LPL Financial, allegedly recommended unsuitable investment strategies to clients, according to his BrokerCheck record, accessed on February 21, 2023. If you have questions about his alleged conduct as a broker, keep reading.

Investor Disputes

On January 6, 2023, an investor alleged that Robert Li recommended an unsuitable investment strategy involving real estate investment trusts (REITs) and buying certain equities on margin. The client alleged that this strategy, executed from December 2008 and January 2023, was unsuitable given their risk tolerance and investment objectives. The client seeks $200,000 in this pending dispute.

In another pending dispute filed on January 5, 2023, an investor similarly alleged that Robert Li recommended an investment strategy involving buying equities on margin, and that it was unsuitable for the client’s risk tolerance and investment objectives. This strategy was allegedly executed from November 2020 to January 2023. The investor seeks $75,000 in damages.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider the characteristics described in the investor’s profile, such as their age, tax status, and risk tolerance.

Brokers also need to ensure that their investment strategies are suitable for their client. For example, overconcentration in a particular sector or stock can expose an investor to an excessive degree of risk.

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

What is a real estate investment trust?

A real estate investment trust (REIT) owns and operates a portfolio of real estate properties. Investors get to generate returns without taking on the cost and responsibility for managing the properties themselves. REITs tend to be illiquid, making them unsuitable for many investors.

Background Information

Robert Li 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

Robert Li is a registered broker in 12 states and a registered investment adviser in Colorado, Illinois, and Texas.

He has also worked for Wachovia Securities (CRD#:19616) and Prudential Securities (CRD#:7471).

Kurta Law Can Help

If you worked with Robert Li 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.