Sarah Komischke Embroiled in Second Unsuitability Dispute
Sarah Komischke (CRD #:5076489), a broker registered with Cetera Investment Services, is involved in an unsuitability dispute, according to her BrokerCheck record, accessed on December 10, 2021. She is also a registered investment advisor with Cetera Investment Advisers.
According to the allegations filed on October 6, 2021, Sarah Komischke recommended an unsuitable investment in an offshore product whose issuer is no longer solvent and is under liquidation order. The damage amount requested is $500,000 — the case is still pending.
This is Sarah Komischke’s second investor dispute alleging unsuitability; in another dispute filed against her on September 23, 2021, an investor claimed that she recommended an unsuitable investment in an offshore fixed annuity. According to the investor, the issuer is no longer solvent and is under liquidation order. The investor further alleged that Sarah Komischke misrepresented the investment claiming it was a Certificate of Deposit. The investor is seeking $60,000; the dispute is pending.
Unsuitability and Misrepresentation
Two issues that investors should be aware of are unsuitability and misrepresentation. While these two terms may seem like different things, they actually have quite a few similarities between them — both involve an investment broker not acting in the best interests of their client.
What is Unsuitability?
“Unsuitability” is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer’s goals and investment profile.
Under FINRA Rule 2111, a customer’s investment profile consists of a wide range of individual characteristics, including the customer’s:
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Risk tolerance.
Brokers have a duty to give advice and recommend investments that are in the best interest of their customers. They should take into account any risk tolerances or goals the person has expressed before making recommendations, as well as if those preferences change over time.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
What is Misrepresentation?
Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest.
Did you know that any of the following can be considered misrepresentation or omission?
- Inadequate due diligence concerning security offerings
- Failure to disclose all material risks
- Failure to disclose all transaction costs
- Unrealistic presumptions for investment projections
- Inaccurate investment performance calculation
Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.
Losses that can be attributed to a stockbroker’s material misrepresentations of facts may result in a viable securities arbitration claim for damages.
Sarah Komischke has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Sarah Komischke is a registered broker in 10 states. She is also a registered investment advisor in New York.
He has also worked with the following firms:
- CommunityAmerica Financial Solutions (CRD#:168203)
- Raymond James Financial Services Advisors (CRD#:149018)
- Raymond James Financial Services (CRD#:6694)
- Chase Investment Services Corp. (CRD#:25574)
- UBS Financial Services (CRD#:8174)
- UBS International (CRD#:107726)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
- AXA Advisors (CRD#:6627)
Kurta Law Can Help
If you have worked with Sarah Komischke and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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.