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FINRA Bars Broker Mark Korsch Following $1.28M Tax Liens And Client Disputes Of $7.4M

Marc Korsch (Marc Frederick Korsch, CRD#5525226) is a currently registered broker and investment advisor employed with Arkadios Capital (CRD#: 282710) of Sarasota, FL. His previous employers include Centaurus Financial, Inc. (CRD#:30833) and Trustmont Financial Group, Inc. (CRD#:18312) both of Sarasota, and Capital Financial Services, Inc. (CRD#:8408), of Port Charlotte, FL. He has been in the industry since 2009. A client filed a dispute on 10/29/2020 alleging that from July 2014 to the current date, Marc Korsch breached his fiduciary duty by investing their funds into high-risk investments that were unsuitable for their portfolio. The client requests damages of $100,000. Korsch denies the allegations and will defend the matter. The dispute is currently listed as “pending.”

Marc Korsch (Marc Frederick Korsch, CRD# 5525226) is a currently registered broker and investment advisor whose last known employer was Arkadios Capital (CRD#: 282710) of Sarasota, FL. His previous employers include Centaurus Financial, Inc. (CRD#:30833) and Trustmont Financial Group, Inc. (CRD#:18312) both of Sarasota, and Capital Financial Services, Inc. (CRD#:8408), of Port Charlotte, FL. He has been in the industry since 2009.

Korsch now has a total of 19 customer disputes filed from 6/15/2021 through 5/10/2022 totaling $7,410,000.00. These 19 disputes include allegations of:

  • Concentration in risky, illiquid investments
  • Breach of fiduciary duty
  • Recommendations of high risk, high fee investments
  • Unsuitable and inappropriate asset allocations/investments
  • Failing to maintain an appropriate asset allocation
  • Negligence and misrepresentation
  • Recommendations of high-commission, unsuitable, complex, and risky investments

FINRA requested information from Korsch, to which he failed to respond. They followed with two letters, Notice of Suspension and Suspension from Association, dated December 1, 2021, and December 27, 2021, with a suspension date of March 4, 2022. Korsch failed to respond to these letters and request termination of his suspension within a three-month period. FINRA then permanently barred Korsch from any association with any FINRA members in any capacity as of March 4, 2022.

Marc Korsch also has five tax lien disclosures:

  • 12/15/2020, for $479,998.20
  • 12/23/2020, for $266,529.70
  • 1/04/2021, for $149,851.50
  • 3/23/2021, for $392,011.65
  • 4/20/20121, for $47,975.84

These liens total $1,336,366.89.

A previous client dispute filed on 06/05/2019 was “closed with no action.” In it the client alleged that Korsch “misrepresented and/or provided misleading information with respect to the investments from August 12, 2014 through May 15, 2019.”  Korsch denied these allegations.

A client dispute filed against Korsch’s former employer Trustmont saw the client receive an award of $500,000. Filed on 2/17/2017, it alleged “violation of Florida’s Securities and Investor Protection Act § 517.011 et al; breach of fiduciary duty; common law fraud; failure to supervise; suitability; negligence/negligent misrepresentation/omission; breach of contract; restitution; and negligent supervision.” However, Marc Korsch was not named in the FINRA arbitration, only his company, and he did not contribute to the settlement amount.

What Are Unsuitable Investments?

We frequently highlight brokers who have are blamed for investing their clients funds in “unsuitable investments.” This broad term generally means that the stock, bond, or other security isn’t in line with the client’s investment objectives. The mix of assets could be off, or the investments could be either too low-risk, too high-risk, or aggressive for the client’s investment’s needs, wants, or tolerance.

The “objectives” are different for each individual. For instance, an unmarried twenty-something will have different investment objectives than a married-with-children fifty-something. And those will be different for someone interested in having additional retirement income when the time comes.

But when a broker or other representative intentionally invests a client’s funds in something they were neither interested in nor suited their portfolio, it can result in losses. The representative could be held financially liable as well.

Occasionally a broker will suggest and/or invest for a client in “alternative investments.” These can be any number of investments that don’t fall into the normal sphere of investments, such as cash, equity, stocks and bonds. Investors must be wary of “alternatives,” because they can be both high-risk and illiquid. Most of these investments are unregulated by the SEC. They tend to be complex, and only be suitable for the well-informed and sophisticated investor.

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We’ve discussed these types of investments in our blogs many times. Some alternatives include pot stocks, investing in legal marijuana for medical use, and REITS, or real estate investment trusts.

This is not to say that all these investments are unsuitable, but it does require an investor to commit to due diligence. That includes reading and fully understanding the investments, the risks, and what’s involved before investing. Due diligence would be required for a casual investor to understand all risks, including using FINRA’s online tool Broker Check to see if the broker in question has had trouble before with “unsuitable investments.

Did You Invest With Marc Korsch?

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 and let us know how we can help.

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