Last Updated: November 2024 (Lancaster, Pennsylvania)
National securities fraud lawyers at Patil Law P.C. are investigating investment advisor Curt Stauffer (CRD #2615431), currently with CS Planning Corp., who faces multiple customer disputes involving unsuitable investments and risky portfolio management strategies. His record shows a concerning pattern of complaints related to direct participation programs (DPPs) and limited partnership interests.
Curt Robert Stauffer (CRD #2615431) currently operates through CS Planning Corp. in Lancaster, Pennsylvania, and has faced seven customer disputes, with settlements totaling over $150,000. His record reveals a pattern of allegations regarding unsuitable investment recommendations and questionable due diligence practices. Below, we provide further details about his professional history, negative disclosures, and customer complaints, which investors should consider before working with him.
Critical Insights About Lancaster, PA Investment Advisor Curt Stauffer
- Advisor Name: Curt Robert Stauffer
- CRD: 2615431
- Location: Lancaster, PA
- Current Employer: CS Planning Corp.
- Classification: Investment Advisor Representative
- Primary Location: Lancaster, PA
- Can Curt Stauffer be sued in private arbitration: Yes
- Has Mr. Stauffer been sanctioned by regulators: No
- Recent Customer Disputes: Seven separate complaints involving DPPs and limited partnerships
- Total Settlement Amounts: Over $150,000 in recent years
If you have suffered investment losses in an account handled by Mr. Stauffer or have a question about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Recent Investment Loss Claims Against Curt Stauffer
Recent Claims and Settlements
A current pending arbitration filed in August 2024 alleges that Stauffer engaged in unsuitable and risky investment practices causing significant losses. The complaint seeks damages of $212,072.10, plus additional costs and treble damages. The allegations specifically focus on inappropriate recommendations in OTC equities and money market funds.
This most recent complaint follows a concerning pattern of previous disputes. Over the past four years, Stauffer has faced multiple complaints resulting in settlements, including:
- A $59,503 settlement involving unsuitable DPP recommendations
- A $44,855 settlement related to advisory account management
- Multiple smaller settlements ranging from $5,000 to $19,699
- Consistent allegations regarding lack of due diligence and unsuitable investment selection
Detailed Analysis of Allegations Against Curt Stauffer
Unsuitable Investment Recommendations
The core of the allegations against Stauffer centers on violations of fundamental investor protection rules. These complaints suggest potential breaches of both FINRA Rule 2111 (Suitability Rule) and SEC Regulation Best Interest. Under these regulations, advisors must have a reasonable basis for believing their recommendations align with the client’s best interests, considering factors such as:
- The investor’s age and retirement status
- Overall financial situation and needs
- Investment experience and knowledge
- Risk tolerance and objectives
- Tax considerations and time horizons
Alternative Investment Concerns
A particularly troubling aspect of Stauffer’s record involves his repeated recommendation of Direct Participation Programs (DPPs) and limited partnerships. These complex investments often carry significant risks, including:
- Limited liquidity and long holding periods
- Complex fee structures and high costs
- Significant tax implications
- Reduced transparency compared to traditional investments
- Higher risk of loss of principal
Regulatory Framework and Investor Protection
Investment advisors like Stauffer must comply with multiple regulatory requirements that are designed to protect investors. Understanding these regulations helps illuminate the severity of the allegations against him.
SEC Regulation Best Interest
The SEC’s Regulation Best Interest, implemented in 2020, establishes a “best interest” standard of conduct for broker-dealers and associated persons when making recommendations to retail customers. This regulation requires advisors to act in their clients’ best interest without placing their own financial interests ahead of the customer’s. Under this rule, advisors must provide detailed disclosures about all material facts relating to their recommendations, including specific costs and risks. They must exercise reasonable diligence and care in making recommendations while actively working to mitigate or eliminate conflicts of interest. The regulation also imposes an ongoing duty to monitor investments when advisors have been granted discretionary authority over client accounts.
FINRA Rules and Their Significance
- FINRA Rule 2310 governs the recommendation of Direct Participation Programs (DPPs) and requires members to perform substantial due diligence on these products. This includes evaluating the program’s financial condition, understanding its tax features, and ensuring reasonable pricing. The rule specifically addresses the complexity of DPPs and mandates enhanced suitability analysis before recommendation.
- FINRA Rule 2330 provides specific protections regarding variable product sales, requiring detailed suitability analysis and specific disclosures about fees, expenses, and surrender charges. This rule was designed to address concerns about the complexity and long-term nature of these investments.
- FINRA Rule 2090, known as the “Know Your Customer” rule, requires firms and associated persons to use reasonable diligence to understand the essential facts about every customer and to maintain records demonstrating this understanding. This includes knowledge about the customer’s financial situation, tax status, investment objectives, and other key information.
- FINRA Rule 3110 establishes comprehensive supervision requirements for member firms. It requires firms to establish and maintain a system to supervise activities of their associated persons that is reasonably designed to achieve compliance with securities laws and regulations. This includes monitoring trading activity, reviewing communications with the public, and maintaining detailed records of supervisory activities.
Investment Advisor Experience and Background
Curt Stauffer’s career in financial services spans over a decade:
- CS Planning Corp. (2020-Present) – Current role as Investment Advisor Representative
- Coastal Investment Advisors (2011-2020)
- EHD Advisory Services, Inc. (2008-2011)
His professional qualifications include:
- Series 65 (Uniform Investment Adviser Law Examination)
- Focus on alternative investments and portfolio management
Red Flags for Investors to Consider
Investors should be particularly concerned about several aspects of Stauffer’s record:
- The high concentration of complaints involving alternative investments suggests a potential pattern of unsuitable recommendations in complex, high-risk products.
- Multiple complaints involving similar products indicate possible systemic issues with his investment selection and due diligence processes.
- The timing and frequency of complaints, particularly during his tenure at Coastal Investment Advisors, raises questions about supervision and compliance oversight.
- The consistent nature of settlement amounts suggests recognition of merit in the underlying claims.
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Curt Stauffer or have questions about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Our cases are handled on a contingency basis. We don’t get paid unless we win for you.
