Registered representatives from Purshe Kaplan Sterling (PKS) were working with The Harvest Group to allegedly sell unsuitable high-risk leveraged ETFs to customers. While Exchange-Traded Funds (ETFs) are legitimate investments, brokers must take into consideration their clients’ investment profiles before recommending them. Failing to do so may make brokers and brokerage firms liable for their clients’ losses, since financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients.
Peiffer Wolf is currently investigating PKS brokers who recommended high-risk leveraged ETFs to their clients. If you have ETFs in your investment portfolio, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
In February of 2022, the Massachusetts Securities Division filed a complaint against PKS, alleging that the firm failed to supervise transactions executed by its registered representatives, which led to approximately $2.3 million in losses to Massachusetts investors.
The complaint alleges that PKS representatives who were also dually registered with Harvest Wealth Management Group recommended investments in exchange-traded funds (“ETFs”). ETFs are complex investments that FINRA has warned are typically unsuitable for average investors. ETFs need to be monitored on a daily basis and can be unsuitable for clients who plan to hold them for more than one day.
Peiffer Wolf has represented thousands of investors, and we remain committed to fighting on their behalf. If you have ETFs in your investment portfolio, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation.
PKS Investments is a broker/dealer and financial services firm headquartered in Albany, New York. Its registered representatives accused of wrongdoing with respect to risky ETF sales were dually registered with The Harvest Group, which is a wealth management firm located in Waltham, Massachusetts.
According to InvestmentNews, In March of 2021, PKS settled with 50 clients for $1.6 million in a FINRA arbitration. Within the past three years, PKS has paid over $16 million in settlements with clients, including a $9.5 million settlement related to the sale of alternative investments to a Native American tribe.
PKS also allegedly unsuitably sold GPB Capital Holdings investments to customers. In 2021, Owner and CEO of GPB Capital, David Gentile, and Jeffry Schneider, the owner of GPB Capital’s placement agent, Ascendant Capital, were charged with running a Ponzi-like scheme by the United States Securities and Exchange Commission.
If you believe you were sold an ETF by a broker who misrepresented the risks, or if you have sustained significant losses because of the purchase of this ETF, it is imperative to take action. Contact Us today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule your FREE Case Evaluation.
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If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.