Former Kestra Investment Services, LLC Broker, Herman Khan, Has Six Customer Complaint Disclosures, Including A Pending Complaint, Alleging Sales Practice Misconduct
Herman Khan (CRD # 1866522) was a Financial Advisor at Kestra Investment Securities, LLC in Pittsburgh, PA. Herman Khan has been in the securities industry since 1992 and previously worked at Raymond James Financial Services, Inc. and Royal Alliance Associates, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Herman Khan has been the subject of six (6) customer complaints, alleging sales practice misconduct:
• June 2020—”Claimant alleges breach of fiduciary duty and unsuitable investment concentration of Atlas Growth Partners.” Alleged damages are $100,000 and the matter remains pending.
• June 2015—”CLAIM INVOLVING THE APPROPRIATENESS OF AN OIL AND GAS INVESTMENT PURCHASED IN 2014.” The claim was denied.
• September 2013—”CLAIM ALLEGES MISREPRESENTATION AND OTHER CAUSES OF ACTION IN CONNECTION WITH THE SALE OF A REAL ESTATE MEZZANINE FINANCING INVESTMENT IN 2007. THE REPRESENTATIVE WAS NOT A NAMED PARTY TO THE ARBITRATION PROCEEDING.” The matter settled for $41,000.
• September 2013—”CLAIM ALLEGES MISREPRESENTATION AND OTHER CAUSES OF ACTION IN CONNECTION WITH THE SALE OF A REAL ESTATE MEZZANINE FINANCING INVESTMENT IN 2007. THE REPRESENTATIVE WAS NOT A NAMED PARTY TO THE ARBITRATION PROCEEDING.” The matter settled for $50,000.
• September 2013—”CLAIM ALLEGES MISREPRESENTATION AND OTHER CAUSES OF ACTION IN CONNECTION WITH THE SALE OF A REAL ESTATE MEZZANINE FINANCING INVESTMENT IN 2007. THE REPRESENTATIVE WAS NOT A NAMED PARTY TO THE ARBITRATION PROCEEDING.” The matter settled for $252, 885.
• September 2013—”CLAIM ALLEGES MISREPRESENTATION AND OTHER CAUSES OF ACTION IN CONNECTION WITH THE SALE OF A REAL ESTATE MEZZANINE FINANCING INVESTMENT IN 2007. THE REPRESENTATIVE WAS NOT A NAMED PARTY TO THE ARBITRATION PROCEEDING.” The matter settled for $40,000.
For a copy of Herman Khan’s CRD, click https://brokercheck.finra.org/individual/summary/1866522#disclosuresSection
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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 email@example.com.
- Former West Park Capital, Inc. and Laidlaw & Company LTD Broker, Bryan Mazliach, Investigated By FINRA For Alleged Violation Of FINRA Rules
- Former BMO Harris Financial Advisors, Inc. Broker, Lori Ann Sacco, Suspended Six Months By FINRA For Allegedly Altering Customer Account Documents
- Former Woodbury Financial Services, Inc. Broker, Jodie Lane, Suspended Six Months By FINRA For Allegedly Accepting Gifts And Becoming Beneficiary Of A Client
- Broker, Kimberley Schkade-Hill, Supsended by FINRA For Four Months And Fined $10,000 For Allegedly Having Clients Sign Documents In Blank
- LPL Financial LLC Broker, Matthew Clason, Is The Subject Of An SEC Enforcement Action For Allegedly Stealing Hundreds Of Thousands Of Dollars From A Client
- Former Capitol Securities Management Inc. Broker, Michael Rubel, Suspended By FINRA For 45 Days For Allegedly Engaging In Short-term Trading Of Unit Investment Trusts
- Recovering Your Investment Losses In Non-Traded Real Estate Investment Trusts And Business Development Companies
- Former Westpark Capital, Inc. Broker, Hary Datys, Suspended By FINRA For Fifteen Months For Allegedly Failing To Conduct Due Diligence Before Selling Promissory Notes
- Former Ameriprise Financial Services, LLC Advisor, Arthur Hoffman, Barred By FINRA For Allegedly Failing To Provide Documents In Relation To Investigation Into Outside Business Activities
- Crown Capital Securities Broker, Kenneth Barroga, Has Had Four Customer Complaint Disclosures