Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Russ Kory (CRD # 5901185) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation regarding unsuitable recommendations.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Kory.
Registration Background for Russ Kory
Mr. Kory first became registered in the securities industry in 2011. FINRA BrokerCheck shows that he was most recently registered with White Plains, NY based David Lerner Associates, Inc. (CRD # 5397) from August 2011 to September 2019.
FINRA’s Allegations Against Russ Kory
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 29, 2022 (No. 2019063686203), Mr. Kory consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between August 2015 and September 2019, while associated with David Lerner Associates, [Mr.] Kory recommended that three firm customers invest in the firm’s proprietary limited partnerships formed to acquire and develop oil and gas properties without having a reasonable basis to believe those illiquid investments were suitable for the customers”;
- “The partnerships were “blind pools,” meaning at the time of the initial offering the partnership had not identified any properties for acquisition”;
- “Each limited partnership’s ability to make return of capital distributions to its partners and to engage in a liquidity event was substantially dependent on the performance of the properties in which the partnerships invested”;
- “Additionally, according to the prospectuses, investments in the partnerships involve a “high degree of risk”;
- “[Mr.] Kory’s recommendations that the three customers invest in the energy partnerships were not suitable given their investment profiles”; and
- By virtue of his actions, Mr. Kory violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Russ Kory from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s August 29, 2022 AWC also indicates that Mr. Kory consented to the following sanction(s):
- A three-month suspension from association with any FINRA member in all capacities;
- A $5,000.00 fine; and
- Disgorgement of profits in the amount of $7,203.00 plus interest.
Russ Kory Has A History of Securities Industry Customer Complaints
In addition to Russ Kory being suspended by FINRA from the securities industry after an investigation into unsuitable recommendations, a September 4, 2022 search of FINRA BrokerCheck for Mr. Kory reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On March 2, 2021 a customer-initiated arbitration was filed naming Mr. Kory as a respondent for alleged actions that occurred while he was registered with David Lerner Associates, Inc. The customer alleged unsuitability, misrepresentation/omission and breach of fiduciary duty. The customer further alleged damages of between $350,000.00 and $750,000.00. On July 6, 2022, the matter was settled in the amount of $45,000.00.
If you or someone you know has or had a brokerage account with Mr. Russ Kory and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
