• April 19, 2024
• RBC Capital Markets

Martin A. Klein III (CRD#: 1778613) is a Registered Broker and Investment Advisor with RBC Capital Markets, LLC in Newport Beach, CA.

Broker’s Background

He entered the securities industry in 1987 and previously worked with Prudential Securities Incorporated; Morgan Stanley DW Inc.; Morgan Stanley & Co.; and J.P Morgan Securities, LLC.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2022, Martin Klein became the subject of a customer dispute where the client alleged, “the advisor made unsuitable recommendations to purchase governmental agency bonds for his portfolio between September 2016 and June 2022, and misinformed him of their potential risk related to rising interest rates.” The damage amount requested is $24,000,000 and the customer dispute is still pending.

In addition, Martin Klein has been the subject of four other customer complaints, which include the following:

• October 2022— “The client alleged the advisor made unsuitable recommendations to purchase governmental agency bonds for his portfolio between December 2020 and November 2021, and misinformed him of their potential risk related to rising interest rates.” The damage amount requested is $10,000,000 and the customer dispute is still pending.

 

• November 2011— “CLIENT ALLEGED THAT ON 3/28/2011 BROKER PURCHASED MUTUAL FUNDS BELOW THE BREAKPOINTS, DID NOT TAKE ADVANTAGE OF STAYING WITHIN THE SAME FUND FAMILIES AND THAT THE FUNDS WERE UNSUITABLE FOR THE CLIENT’S RISK TOLERANCE.” The customer dispute was denied.

 

• March 2011- “CLIENT ALLEGES THAT THE BROKER FAILED TO MONITOR BOND PRICES AND NOTIFY HIM ACCORDINGLY AS PER HIS INSTRUCTION.” The customer dispute was denied.

 

• September 2001— “CLIENT ALLEGED THAT MR. MARTIN NEGLECTED TO CALL HER BETWEEN NOVEMBER 2000 AND FEBRUARY 2001 WHILE THE MARKET VALUE OF HER ACCOUNT WAS DECLINING. CLIENT COMPLAINS THAT HER (UNREALIZED) LOSS AMOUNTED TO APPROXIMATELY $26,000.” The customer dispute was denied.

For a copy of Martin Klein’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, 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.