• November 23, 2021
• Wells Fargo Advisors

David Kraft (CRD#: 2356400) is a previously registered Broker and previously registered Investment Advisor.

 

Broker’s Background

 

He entered the securities industry in 1993 and previously worked for Morgan Stanley, Wells Fargo Advisors, LLC; Morgan Keegan & Company, Inc.; and UBS Painewebber, Inc.

 

Allegations Of Conduct Leading To Investment Loss

 

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2021, a customer dispute was filed against David Kraft. The allegation states, “Client alleges that Mr. Kraft removed funds from her accounts without authorization.” Damages of $716,528.06 are requested. The customer dispute remains pending.

 

In addition, David Kraft has been the subject of four customer complaints and regulatory disclosures, including one that remains pending, including the following:

 

• March 2020–”Client alleges that Mr. Kraft removed funds from a trust account without authorization.” Damages of $1.2M are requested. The customer dispute is pending.
• December 2019–”Respondent David Kraft failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.” David Kraft was suspended from all capacities by FINRA indefinitely beginning December 10, 2019 until the required payment is made or discharged. For a copy of the arbitration, click here.
• July 2019–”Respondent Kraft failed to respond to FINRA request for information.” David Kraft was barred by FINRA from all capacities indefinitely beginning November 4, 2019.
• November 2015–”Client alleged misrepresentation with respect to mutual fund investments in account – September 2012 to March 2015.” The customer dispute was settled for $40,000.
• September 2014–A financial disclosure (compromise) was satisfied/released.
• December 2007–”COMPLAINT ADDRESSED TO FINRA ALLEGES UNSUITABILITY AND UNAUTHORIZED TRADING OF CLOSED-END FUNDS.” The customer dispute was closed with no action.
• October 2007–”FLORIDA STATE RESIDENT EXPRESSED IN WRITING THAT HER FA’S CHOICE OF INVESTMENT WAS NOT SUITABLE. CUSTOMER FURTHER STATES THAT FA MADE UNAUTHORIZED TRADES OF MUTUAL TRADES IN AUGUST OF 2007. CUSTOMER DOES NOT STATE DAMAGE AMOUNT, BUT LOSSES ARE ESTIMATED TO BE APPROXIMATELY $71,000.” The customer dispute was denied.

 

For a copy of David Kraft’s FINRA BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

 

FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.

 

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.