Russ Kory of White Plains, New York, a stockbroker formerly registered with David Lerner Associates Inc., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon accusations that Kory made unsuitable recommendations. Letter of Acceptance, Waiver, and Consent No. 2019063686203 (September 2, 2022).
According to the AWC, while registered with David Lerner Associates, between August 2015 and September 2019, Kory recommended that three customers invest in proprietary limited partnerships. These partnerships were formed to develop and acquire gas and oil properties. Kory did not have a reasonable basis for thinking that those illiquid investments suited the customers’ objectives. In one instance, Kory recommended that a customer invest $382,000.00 in one of the illiquid limited partnerships. Accordingly, Kory violated FINRA Rules 2010 and 2111.
Public Disclosure shows that Kory is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $45,000.00 in damages based upon allegations that Kory made unsuitable recommendations, breached a fiduciary duty, and made omissions and misrepresentations with regard to the recommendation and sale of private placements (Energy 11) and mutual funds during the period that Kory was associated with David Lerner Associates Inc. FINRA Arbitration No. 21-00575 (July 6, 2022).
Kory was registered with David Lerner Associates from August 8, 2011, to September 12, 2019.
