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FINRA Suspends Russ Kory for Allegedly Unsuitable Investment Recommendations

Dec 22, 2022 FINRA Suspension

Russ Kory (CRD #: 5901185), a broker formerly registered with David Lerner Associates, was recently suspended by FINRA, according to his BrokerCheck record, accessed on December 14, 2022. If you have questions about his alleged conduct as a broker, keep reading.

FINRA Suspension

On September 2, 2022, Russ Kory consented to the entry of findings that he allegedly made recommendations to clients without a reasonable basis to believe the investments were suitable between August 2015 and September 2019.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that Russ Kory recommended that three clients of David Lerner Associates invest in one or both of the firm’s limited partnerships. These limited partnerships were formed to acquire and develop oil and gas properties and were “blind pools,” meaning that the partnerships had not identified any properties for acquisition at the time of their initial offerings.

These partnerships allegedly aimed to make distributions to investors and, 5-7 years after the termination of the offering, engage in a liquidity event. However, each partnership’s ability to fulfill these objectives depended on the performance of the properties the partnerships invested in. The partnerships’ prospectuses allegedly identified them as involving a “high degree of risk.”

Russ Kory allegedly received $7,203 in commissions from these investments.

The AWC concluded that Russ Kory’s alleged unsuitable investment recommendations violated FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investors’ profiles describe an investor’s tax status, risk tolerance, and other characteristics.

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

FINRA Rule 2010

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

Sanctions

Russ Kory consented to the following sanctions:

  • $5,000 fine
  • 3-month suspension
  • $7,203 disgorgement, plus interest

His suspension ran from September 6 to December 5, 2022.

You can read a copy of the AWC here.

Background Information

Russ Kory has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

He previously worked for David Lerner Associates (CRD#:5397).

Kurta Law Can Help

If you worked with Russ Kory 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.