Investors Seek Over $6 Million in Disputes with Marc Korsch

Marc Korsch (CRD #: 5525226), a broker formerly registered with Arkadios Capital, is involved in thirty investor disputes, according to his BrokerCheck record, accessed on July 6, 2023. Investors who have questions about his record as a broker should keep reading.

Pending Investor Disputes

Thirty pending disputes, filed from February 2022 to May 2023, collectively make allegations that Marc Korsch recommended speculative, high-risk, illiquid, and otherwise unsuitable investments.

Some of these disputes also allege that investors were charged high fees and commissions, and others allege the misrepresentation of unsuitable investments.

These disputes seek to recover approximately $6.6 million. 

Another pending dispute, filed on May 31, 2022, alleged that Marc Korsch engaged in misconduct with regard to certain investments. This dispute seeks $99,000. 

On September 20, 2021, an investor alleged that Marc Korsch recommended unsuitable, high-commission, risky, and complex investments. This client seeks $1.5 million in damages.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

• High-risk investments may be unsuitable due to their likelihood of losing money.
• Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
• Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
• Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent tactics to influence the purchase and sale of securities. Misrepresenting an investment’s risks, requirements, or other features violates this rule.

FINRA Bar 

On December 1, 2021, FINRA suspended Marc Korsch following allegations that he failed to respond to FINRA requests for information. His alleged continued failure to respond to requests for information led to his bar, starting on March 4, 2022. 

Settled Disputes

Marc Korsch has 18 settled investor disputes on his record, many of them alleging that he recommended unsuitable and risky investments. 

Tax Liens

Korsch is the subject of five tax liens which total approximately $1,366,366.89.

Background Information

Korsch has passed the following exams:

• Series 63 Uniform Securities Agent State Law Examination
• Series 65 Uniform Investment Adviser Law Examination
• Securities Industry Essentials Examination
• Series 7 General Securities Representative Examination
• Series 6 Investment Company Products / Variable Contracts Representative Examination
• Series 24 General Securities Principal Examination

Marc Korsch has worked with the following firms:

• Arkadios Capital (CRD #: 282710)
• Arkadios Wealth Advisors (CRD #: 288863)
• Centaurus Financial Inc (CRD #: 30833)
• Trustmont Financial (CRD #: 18312)
• Capital Financial Services (CRD #: 8408)
• Variable Investment Advisors (CRD #: 44412 )
• Nav Wealth Advisors (CRD #: 151167)
• Gradient Securities (CRD #: 127701)

Kurta Law Can Help

If you worked with Marc Korsch and you have concerns about the suitability of your Puerto Rico securities or bonds, contact Kurta Law today. Call 212-658-1502 or email jkurta@kurtalawfirm.com.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.