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Todd Kling Subject of FINRA Suspension

Oct 25, 2021 Excessive Trading

Todd Kling (CRD #: 3034284), a broker with Joseph Stone Capital, is the subject of a FINRA Suspension. For details concerning Todd Kling’s conduct as a broker, keep reading. 

FINRA Suspension 

On December 17, 2021, Todd Kling consented to the findings that he engaged in excessive and unsuitable trading. He also allegedly utilized margin—a trading strategy that uses borrowed money from the brokerage and amplifies the risk for losses. According to the Acceptance, Waiver, and Consent agreement (AWC), Todd Kling recommended trades with a value of $5,414,465 in an account with an average month-end equity of $259,633. Collectively, these trades resulted in $153,879 in commissions for Todd Kling. With these trading costs, the account would have to grow by 35% in order for the investor to break even. 

Todd Kling consented a three-month suspension. In light of his financial status, FINRA did not impose a monetary sanction. 

FINRA Rule 2111

FINRA Rule 2111 requires financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy is suitable for their client. Investments may be unsuitable because they do not align with the investor’s financial goals, investing experience, age, or risk tolerance.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended period and may be costly to cash out.
  • Securities must also be quantitatively suitable, meaning that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves.

A violation of FINRA Rule 2111 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”

Financial Disclosures

Todd Kling’s BrokerCheck record also features several financial disclosures. Between 2015 and 2021, he was the subject of four tax liens. They collectively totaled $94,062.70.

Todd Kling Background Information

Todd Kling 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

He is a registered broker in 30 states and an Investment adviser in Florida

Besides Joseph Stone Capital and Joseph Stone Wealth Management, Todd Kling has worked with the following firms:

  • Royal Alliance Associates (CRD#:23131)
  • FMSI Advisers (CRD#:21786)
  • First Midwest Securities (CRD#:21786)
  • Financial Network Investment Corporation (CRD#:13572)
  • First Republic Group (CRD#:39781)

Kurta Law Can Help

If you have suffered losses after working with Todd Kling, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.