FINRA Fines and Suspends Ohio Broker for Selling Illiquid and High Risk Investments to Retired, Conservative Investors

Soreide Law Group, (888) 760-6552, obtained the following summation of information on FINRA’s website under “Disciplinary and Other FINRA Actions, October, 2013.”

Karen Yvonne Geiger (CRD #1456604, Registered Representative, Akron, Ohio)

was fined $15,000, which includes disgorgement of commissions received of $2,000, and suspended from association with any FINRA member in any capacity for 30 business days. Without admitting or denying the findings, Geiger consented to the described sanctions and to the entry of findings that she recommended and sold a total of $206,000 of an illiquid and high-risk alternative investment to a retired married couple.

FINRA's findings stated that at the time the couple opened their securities accounts with Geiger, their main sources of income were a pension plan and social security payments. They informed Geiger that they had a moderate risk tolerance, their investment objective was long-term growth, and that one customer’s investment knowledge was moderate while the other’s was limited and they indicated that they had approximately 60 percent of their net worth in retirement/pension accounts. To help fund their purchase, the couple withdrew $76,000 in cash that had been held in a conservative IRA and invested a total of $206,000 in debentures, which represented approximately 20 percent of their liquid net worth, which was a little more than $1 million and approximately 14 percent of their total net worth, which was approximately $1.3 million.

The suspension was in effect from September 3, 2013, through October 14, 2013.
(FINRA Case #2012033508701)

According to FINRA's website, Karen Yvonne Geiger is currently employed by and registered with the following FINRA Firm:

WALL STREET STRATEGIES, INC.
2780 S. ARLINGTON ROAD, SUITE 201
AKRON, OH 44312
CRD# 31268
Registered with this firm since: 10/15/2013

Karen Yvonne Geiger was previously registered with FINRA at the following brokerage firms:

REGAL SECURITIES, INC.
CRD# 7297
AKRON, OH
01/2009 - 01/2012

USA ADVANCED PLANNERS INC.
CRD# 131282
AKRON, OH
12/2006 - 12/2008

H&R BLOCK FINANCIAL ADVISORS, INC.
CRD# 5979
FAIRLAWN, OH
04/2003 - 12/2006

This ends the summation for the information obtained on FINRA’s website.

Soreide Law Group represents clients nationwide in arbitrations before FINRA. Call to speak to an attorney regarding your investment losses. For a free consultation on how to potentially recover those losses call: 888-760-6552.