Financial world is complex, full of allegations and counter-allegations. Kirk Badii – a stockbroker from the past – is an example. Badii, who was once a part of UBS Financial Services and is now a stockbroker, has racked up a number of recent incidents, which are recorded on FINRA’s records. Among the notables are a settlement of a customer dispute and two terminations.
Regulating the Regulated
Let’s start by breaking down some complex information into digestible chunks. FINRA stands for Financial Industry Regulatory Authority. This is where all the money stops. Wall Street is the sheriff of the world. Essentially, the agency is responsible for licensing and regulating stockbrokers and firms. Brokers are required to report complaints and disputes from customers, as well regulatory sanctions. They must also disclose financial information about themselves, such as bankruptcies and judgments.
The $525,000 Settlement
In December 2021, an elderly housewife accuses Badii of mismanaging accounts. The accusation was based on ‘alternative investing’ that the claimant felt were unsuitable. She claimed Badii failed to adequately explain the resulting risks. She also claimed that credit lines had been established in her name to enable her to buy these investments. Her family and she both believed that the distributions from the investments were income. In December 2022 the dust settled and a $525,000 deal was made.
For those who are unfamiliar with alternative investments, they are not the usual stocks or bonds. Alternative investments are divided into five different categories: hedge funds, private equity, natural resources (REITs), real estate, and infrastructure. These investments are considered to be higher-risk, with higher fees and less regulation. They also tend to be less liquid.
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Now, the Employment Aftermath
Badii was let go by UBS Financial Services in August 2018 after serving six years at the firm, from May 2012. Badii’s FINRA report shows that he violated the social media policy of UBS Financial Services and prevented his management from monitoring it. In addition, he violated the firm’s KYC/AML Policy while admitting some clients and prospects.
It was not Badii’s first firing. He was terminated earlier in his career. “allowed to resign” Credit Suisse Securities for violations of the firm’s policy.
Badii has registered with Independent Financial Group, a company in Southlake, Texas. His professional past includes a stint with Cantella & Co.
This investigation has implications for the future
What does this mean to Southlake residents and investors? You may have dealt with Kirk Badii who is the person behind “Badii Private Wealth Management,” It might be time for you to review your finances.
Remember, FINRA Rules 3110 & 2090 clearly state that firms have a duty to supervise their financial advisors. They must make sure that the recommendations they give are appropriate for their customers. You may be entitled to compensation if you believe that this has not been the case.
You should contact a securities attorney if you find yourself in a similar situation, or suspect any potential irregularities. Remember that the majority of cases are handled on a contingency fee basis. You will not be charged legal fees until the case is won.
You can protect yourself from financial disasters by obtaining accurate information about REITs, alternative investments and elder financial abuse. Main Street is a different world from Wall Street. Due to the complexity of finance, it is important that you know how to navigate these waters.