Purshe Kaplan Sterling Investments (“Purshe Kaplan Sterling”) (CRD#35747) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Purshe Kaplan Sterling, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Purshe Kaplan Sterling, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Purshe Kaplan Sterling?
If you’ve lost money caused by Purshe Kaplan Sterling and/or its employees’ misconduct then the answer is, YES, you can sue Purshe Kaplan Sterling, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Purshe Kaplan Sterling in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Purshe Kaplan Sterling is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Purshe Kaplan Sterling?
Purshe Kaplan Sterling (CRD#35747) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Purshe Kaplan Sterling is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Purshe Kaplan Sterling Has Many Different Regulatory Problems
Purshe Kaplan Sterling’s rapid growth has not been without consequences. There have been approximately 9 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Purshe Kaplan Sterling for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Purshe Kaplan Sterling is a repeat offender: there are over 9 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Purshe Kaplan Sterling Has Faced Over the Years*
Purshe Kaplan Sterling has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. * A few of the notable FINRA Sanctions for its Supervisory Failures are below:
State of Maine Fines Purshe Kaplan Sterling for Failure to Comply with Rule Requiring In-Person Branch Audits
Brief Overview: The State of Maine initiated an investigation into Purshe Kaplan Sterling that revealed the firm failed to conduct on-site branch office inspections in violation of securities law rules. Specifically, the State of Maine said it issued Order 2021-12 that granted broker-dealers continued relief until December 31, 2021 from on-site branch office inspections requirements contained in Maine Office of Securities rules. However, the firm conducted its 2022 branch office inspections virtually believing that the firm was still under FINRA’s continued relief to conduct branch audits in person. As a result, the firm was fined.
FINRA Censures and Fines Purshe Kaplan Sterling for Failure to Conduct Adequate Due Diligence of Registered Representative’s Outside Business Activities
Brief Overview: Without admitting or denying the findings, Purshe Kaplan Sterling consented to the sanctions and to the entry of FINRA findings that it failed to conduct adequate due diligence of its registered representatives’ outside business activities. FINRA said the firm, in approving the outside business activities of its registered representatives, did not obtain or review information such as sample client advisory agreements, compensation received for investment advisory services, and other information sufficient to determine whether these activities involved private securities transactions. FINRA also said the firm did not have an adequate supervisory system for the review of the performance reports used by its registered persons. In other words, the firm’s written procedures concerning performance reports did not include any provision for the supervisory review of the contents of these reports. As a result, the firm was censured and fined $200,000.
FINRA Censures and Fines Purshe Kaplan Sterling for Registered Representative’s Fraud on Native American Tribe
Brief Overview: Without admitting or denying the allegations, Purshe Kaplan Sterling consented to the sanctions and to the entry of FINRA findings that its supervisory failures prevented it from detecting and halting its registered representative’s fraudulent conduct. FINRA said a representative submitted an outside business activities form notifying the firm that he would be starting employment with a Native American tribe as its treasury investment manager and would be responsible for managing the Native American tribe’s investments, including advising which investments the tribe should purchase. Knowing that tribal leaders relied upon his recommendations as treasury investment manager, the representative recommended the tribe invest more than $190 million in non-traded REITs and BDCs over the course of three years, generating $11.4 million in commissions for the firm, $9.6 million of which was paid to the representative. FINRA said the firm should have then implemented procedures to mitigate such risk, but the firm’s supervisory failures led it to fail to detect and prevent the representative’s fraud. As a result, the firm was censured and fined $750,000 and ordered to pay over $3.3 million in restitution.
FINRA Censures and Fines Purshe Kaplan Sterling for Failure to Supervise Variable Annuity Transactions
Brief Overview: Without admitting or denying the findings, Purshe Kaplan Sterling consented to the described sanctions and to the entry of FINRA findings that the firm failed to establish, maintain and/or enforce a supervisory system and written procedures that were reasonably designed to achieve compliance with the rules and regulations applicable to the supervision and suitability of variable annuity transactions. Specifically, FINRA alleged the firm failed to review such transactions on a timely basis, supply adequate guidance to supervisors to effectively review the suitability of variable annuity exchanges and the subaccount and rider recommendations associated with variable annuity sales, and implement reasonable means of identifying suspicious patterns involving variable annuity exchanges, such as exception reports. As a result, the firm was censured and fined $100,000.
FINRA Censures and Fines Purshe Kaplan Sterling for Failure to Perform Suitability Reviews of Mutual Fund Transactions
Brief Overview: Without admitting or denying the findings, Purshe Kaplan Sterling consented to the described sanctions and to the entry of FINRA findings that the firm failed to establish, maintain, and enforce supervisory system and written procedures reasonably designed to achieve compliance with federal securities laws and regulations and NASD rules. Specifically, FINRA said the firm failed to establish reasonable procedures concerning suitability reviews of customer mutual fund transactions; failed to enforce the firm’s written procedures requiring its compliance department to perform suitability reviews of mutual fund switches and obtain executed switch letters from customers; and failed to enforce written procedures providing for special supervision of registered representatives after customers filed complaints. As a result, the firm was censured and fined $50,000.
*Above are only some of the regulatory disciplinary actions filed against Purshe Kaplan Sterling by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 4 BrokerCheck disclosures.
Purshe Kaplan Sterling Customer Complaints
There have been scores of customer complaints filed against Purshe Kaplan Sterling’s stockbrokers and investment advisors over the years. We have launched many investigations of current and former Purshe Kaplan Sterling advisors:
- Alan Beugg of Purshe Kaplan Sterling Investments
- Kevin Webb of Purshe Kaplan Sterling Investments
- Dean Dillenberg of Purshe Kaplan Sterling Investments
- Zachary Hawkins of Purshe Kaplan Sterling Investments
- Jonathan Penta formerly with Purshe Kaplan Sterling Investments
- Gary Tangwall of Purshe Kaplan Sterling Investments
- John Reutemann Of Purshe Kaplan Sterling Investments
- Roger Ingwersen of Purshe Kaplan Sterling Investments
- Andrew Brinkman of Purshe Kaplan Sterling Investments
- Emily Nikoloudis of Purshe Kaplan Sterling Investments
- Michael Saul of Purshe Kaplan Sterling Investments
- Andrew Scheirer of Purshe Kaplan Sterling Investments
- Christopher Wilbratte of Purshe Kaplan Sterling Investments
- David Spence of Purshe Kaplan Sterling Investments
- John Stophel of Purshe Kaplan Sterling Investments
- Larry Hancock formerly with Purshe Kaplan Sterling Investments
- Matthew McCoy of Purshe Kaplan Sterling Investments
- Steven Novick of Purshe Kaplan Sterling Investments
- William Platt of Purshe Kaplan Sterling Investments
- Grant Boren of Purshe Kaplan Sterling Investments
- Bradley Small of Purshe Kaplan Sterling Investments
- Melissa Cournyer of Purshe Kaplan Sterling Investments
- Eric Kiblen of Purshe Kaplan Sterling Investments
- Nicholas Hamilton of Purshe Kaplan Sterling Investments
- William Horak of Purshe Kaplan Sterling Investments
- Christopher Wells of Purshe Kaplan Sterling Investments
- Glynnis Reinhart of Purshe Kaplan Sterling Investments
- Aaron Ungerer of Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Alan Tocman formerly withPurshe Kaplan Sterling Investments
If you have lost money investing with any of these Purshe Kaplan Sterling advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Purshe Kaplan Sterling Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Purshe Kaplan Sterling Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Purshe Kaplan Sterling is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Purshe Kaplan Sterling without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Purshe Kaplan Sterling Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Purshe Kaplan Sterling cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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