Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) discloses troubling updates regarding securities broker David Kraft (CRD#: 2356400, Palm Beach Gardens, Florida). Evidently, at least five investors filed disputes regarding the sales practices of the securities broker, who worked for Morgan Stanley between 2012 and 2019. Notably, investors’ claims suggest that Kraft made unauthorized and unsuitable transactions and that he caused their losses. Also, FINRA barred Kraft from acting as a broker. Here’s more:
Morgan Stanley Client Indicates That David Kraft Made Unauthorized Trades
Apparently, on March 30, 2020, two clients of Morgan Stanley filed complaints to contest Kraft’s sales practices. Significantly, one client alleged that Kraft “removed” the client’s funds from her account without her knowledge or authorization. For this reason, the client demanded $716,528.06 in damages from Kraft or Morgan Stanley. Apparently, the other Morgan Stanley client claimed that Kraft did not have authorization to tap the client’s trust account. Evidently, the client alleged $1,201,922.12 in damages stemming from Kraft’s actions. These matters are ongoing.
Prior Investor Disputes Indicate Kraft Misrepresented Investments, Made Unsuitable Trades
Notably, a Morgan Stanley client took aim at Kraft in a complaint dated November 23, 2015. Mainly, the client contended that Kraft misrepresented facts in connection with the client’s mutual funds investments. It seems that the client invested in mutual funds through Kraft from 2012 to 2015 because of Kraft’s misrepresentations. For this reason, Morgan Stanly settled this matter through making a $40,000 payment to the client.
Also, Morgan Keegan and Wachovia clients indicate in disputes that Kraft made unsuitable transactions.
FINRA Bars David Kraft
Evidently, on November 4, 2019, FINRA barred Kraft. It appears that Kraft did not respond to its request for information in 2019. Apparently, FINRA issued the bar after a three month grace period in which Kraft was suspended. Not only that, but FINRA also issued a suspension to Kraft for his failure to comply with an arbitration award.
Losses From Morgan Stanley Securities Broker David Kraft?
Have you experienced losses by investing with David Kraft? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Kraft.