Stanley Kaplan Allegedly Violated the Suitability Rule

Stanley Kaplan (CRD #: 865744), a broker registered with SW Financial, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on March 22, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

On January 23, 2023, an investor alleged that Stanley Kaplan engaged in negligence, charged excessive commissions, and violated the suitability rule. The client seeks $225,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must take into account an investor’s tax status, risk tolerance, age, and other information described in their profile.

Common reasons investments may be unsuitable include a high degree of risk or a lack of liquidity. A series of trades may be quantitatively unsuitable if it generates high fees and commissions that significantly reduce the client’s returns.

Brokers must also recommend suitable investment strategies. For instance, overconcentration in a particular stock or sector can increase an investor’s risk beyond what is appropriate for their financial goals.

What Is Broker Negligence?

Brokers may act in many negligent ways, including by recommending unsuitable investments,  executing unauthorized trades, or failing to supervise other brokers.

Investors who have lost money through broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Stanley Kaplan has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 1 – Registered Representative Examination

Stanley Kaplan is a registered broker in Florida, Massachusetts, New Jersey, Ohio, and Washington.

He has also worked for the following firms:

• Joseph Gunnar & Company (CRD#:24795)
• WestPark Capital (CRD#:39914)
• Newport Coast Securities (CRD#:16944)
• Sterne Agee Financial Services (CRD#:18456)
• Newbridge Securities Corporation (CRD#:104065)
• Westminster Financial Securities (CRD#:20677)
• Moors & Cabot (CRD#:594)
• Smith Barney Shearson (CRD#:7059)
• Lehman Brothers (CRD#:7506)
• Tucker Anthony (CRD#:837)
• IDS Life Insurance Company (CRD#:6321)
• IDS Marketing Corporation (CRD#:6363)
• IDS Financial Services (CRD#:6320)

Kurta Law Can Help

If you worked with Stanley Kaplan and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

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.