The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker David Kondracke. According to his publicly available FINRA BrokerCheck report, David Kondracke has been the subject of multiple customer disputes.

David Kondracke was an Ohio based securities broker. He worked in the securities industry for thirty-eight years. During his career, he was registered with three different securities firms.

His Registrations

  • Vercoe & Company (1978-1984)
  • Advest (1984-2006)
  • Merrill Lynch (2006-2017)

The Allegations

  • In September 2016, customers alleged that David Kondracke made unsuitable investment recommendations and made material misrepresentations of material facts. This case was settled for $77,000 in damages. He received an identical complaint in October 2016. This case was settled for $50,000 in damages.
  • In January 2017, David Kondracke resigned from Merrill Lynch following allegations that he entered into an unapproved financial arrangement with a client, made unsuitable investment recommendations, and failed to adhere to firm standards regarding reporting a customer complaint.

What Does This Mean?

Most investors lack the knowledge and experience to choose suitable investments without the aid of a securities broker. Investors tend to rely heavily on their broker to recommend securities that are suitable for them based on factors like investment objectives, financial situation, age, liquidity needs, and risk tolerance. Most investors tend to trust their broker implicitly whenever they recommend investments. When it turns out these investments were unsuitable for them based on the above mentioned factors, it serves as a significant shock to the investor. This is because brokers are expected to conduct the necessary due diligence that is required to determine if a particular security is suitable for a particular customer. Brokers either know, or should know, whether or not an investment is suitable and should be held liable for losses that occur due to their unsuitable recommendations.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with David Kondracke, please contact Oakes & Fosher for a free and private consultation.