Daniel Beech (Daniel Keith Beech CRD# 6169844) is a registered broker and investment advisor currently employed with Innovation Partners LLC (CRD# 146344) of Charlotte, NC. His previous employers were Western International Securities (CRD# 39262) of Westlake Village, CA, Independent Financial Group, LLC (CRD# 7717) of Sherman Oaks, CA, and Royal Alliance Associates, Inc. (CRD# 23131) of Los Angeles, CA. He has been in the industry since 2013.
Beech’s CRD includes 13 customer disputes, two of which have been settled. The other 11 were filed between 4/29/2022 and 1/11/2023 and are currently listed as “pending.” Several disclosures list clients seeking reimbursement for their investments, while others have allegations of unsuitability and negligence. The collective damages for these 11 customer disputes total $2,558,150.00.
The two earlier disputes both requested $5,000 in damages, and were settled for $72,500, collectively.
What Does Unsuitability Mean?
In a basic sense, it means just that—a broker gave a client unsuitable recommendation advice that they followed based on the broker’s advice. Brokers and broker-dealers are required to make sure that their suggested investments have been vetted and determined to be in the client’s best interest without any conflicts of interests or extra incentives involved.
The SEC’s Regulation Best Interest (Reg BI) requires that brokers and broker dealers exercise reasonable care, diligence and skill when making a recommendation to a retail customer. They must also disclose any conflicts of interests or incentives (such as commissions or bonuses) that might be involved when they sell such a security.
Previously, brokers were only held to the standard of “suitability,” leading to allegations of “unsuitability.” Under Regulation Best Interest, brokers have a higher standard than simply suitability.
In the case of Beech, he allegedly failed on multiple occasions to consider the client’s best interests as required. If you believe your broker has made unsuitable recommendations, we invite you to consult with our securities law attorneys to discuss your accounts.
FINRA Regulation Best Interest In Action
Last year, a company called Western International Securities was the first broker dealer to be sanctioned by the SEC under Reg BI for their sales of the now-defunct GWG Holdings’ investment called L-Bonds. The firm and five of its brokers were sanctioned under the new Reg BI for violating the “best interest” rule. These bonds were clearly not suited for retail customers but Western and its brokers continued to recommend L-Bonds to their customers despite the statements in the prospectus.
The brokers also failed to consider the customers’ investment objectives and profiles. They failed to complete due diligence when recommending speculative securities to customers who were interested in conservative investments. The broker-dealer used outdated compliance information and failed to train the brokers in Reg BI and make changes to its own internal processes for compliance with Reg BI.
Did You Invest With Daniel Keith Beech?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.