As the world of finance and investing continues to evolve, so too does our understanding of the rights and responsibilities of both investors and broker-dealers. The Financial Industry Regulatory Authority (FINRA) plays an instrumental role in this, as it regulates the players in the U.S. industry. This body has implemented comprehensive guidelines and rules to protect investors, which unfortunately, are sometimes violated. A spotlight has most recently been shone on Keith Matthew Kordich, a broker based out of Boca Raton, Florida. He’s currently under scrutiny, facing allegations of providing unsuitable investment advice, which has notably raised eyebrows as seen on his FINRA profile (CRD: 2743797).
An Overview of Kordich’s Current Situation
Keith Kordich, currently associated with Ameriprise Financial Services since 2019, previously had a stint with Morgan Stanley. However, certain blemishes marked his financial advisory track record which has stirred up questions. Clients have raised concerns and initiated disputes against Kordich, mainly pointing to unsuitable investment guidance. Let’s delve into his highlight reel – which isn’t one to boast about!
During his time at Morgan Stanley, a client kicked off FINRA Arbitration No. 19-00463, zooming in on questionable investment advice from 2012-2015 on stocks. Notably, this client dispute concluded with Morgan Stanley dolling out $50,000 on January 14, 2020, as compensation.
Unveiling More Allegations
If you thought that was all – think again! Kordich found himself embroiled in another dispute when a client of Morgan Stanley Smith Barney raised the alarm on his trading activities, via FINRA Arbitration No. 13-01114. The red flag here was the alleged excessive trading that took place between May 2011 and September 2012. These activities reportedly led to dents in variable annuities and stocks, and eventually, a settlement of $43,000 by Morgan Stanley on March 12, 2014.
Now, let’s rewind the clocks back to a time when Kordich was associated with Ladenburg Thalmann Co. Inc. Double trouble hit him with two complaints, both entailing serious allegations such as breach of fiduciary duty, misrepresentation, unauthorized activities, and unsuitable recommendations. Both complaints saw payouts – one client sought $500,000 in compensation, and the other saw a settlement by Ladenburg Thalmann Co. Inc. of $9,500 on October 23, 2001.
So, What’s Next?
Hopefully, this is a crucial lesson for all – a reminder of the importance of seeking responsible and professional investment advice. For those unfortunate investors who have suffered losses due to Kordich’s alleged transgressions, there are legal avenues to seek recovery of these losses. Whether or not Kordich will weather the storm of these allegations is a tale yet to unfold. Despite these allegations, Keith Kordich and his former employers deny any violations of sales practice.
In the meantime, always remember to steer clear from fancy talks of risk-free investments and high-return guarantees. In the world of finance, there’s seldom a free lunch!