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Last Updated: February 2025

Purshe Kaplan Sterling Investments (PKS) is a broker-dealer headquartered in Albany, New York, that has operated since 1993. While the firm maintains widespread operations across the United States, their regulatory history raises serious concerns about their supervision practices and protection of retail investors. This article examines PKS’s background, regulatory issues, and what investors should know about working with this firm.

About Purshe Kaplan Sterling Investments

PKS (CRD# 35747) is registered with FINRA and the SEC, operating in 52 U.S. states and territories. The firm conducts 13 types of business, including selling corporate equity and debt securities, mutual fund sales, variable life insurance and annuities, private placements, real estate investment trusts (REITs), and business development companies (BDCs). The firm utilizes National Financial Services LLC as their clearing firm and maintains multiple affiliate relationships with other financial services companies.

Key Regulatory and Legal Issues

PKS has faced numerous regulatory actions that highlight concerning patterns in their business practices:

Recent GPB Capital-Related Violations (2023)

In December 2023, FINRA fined PKS $40,000 and ordered $16,000 in restitution for failing to disclose material information to investors regarding GPB Capital offerings. The firm allegedly sold limited partnership interests without informing customers about delayed audited financial statements and other critical issues.

Massachusetts Securities Violations (2022)

The Commonwealth of Massachusetts sanctioned PKS for failing to properly supervise leveraged ETF transactions and maintain adequate policies regarding private securities transactions. This resulted in a $250,000 fine and $64,628 in restitution to affected customers.

Native American Tribe Case (2017)

A particularly egregious case involved PKS failing to detect and prevent fraudulent conduct by one of their representatives who serviced a Native American tribe. The representative misrepresented commission arrangements and failed to apply volume discounts, resulting in:

  • $750,000 in fines
  • Over $3.3 million in restitution
  • Required retention of an independent consultant

Supervision Failures

Multiple regulatory actions cite PKS for inadequate supervision of:

  • Variable annuity transactions
  • Mutual fund switches
  • Outside business activities
  • Customer fund transmittals
  • Branch office inspections

Individual Financial Advisor Complaints and Disclosures

We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.

Frequently Asked Questions About Broker-Dealer Misconduct Cases

How do I know if I have a valid claim against Purshe Kaplan Sterling Investments?

You may have a valid claim if you’ve experienced financial losses due to:

Our attorneys can review your account statements and communications to determine if you have grounds for recovery.

How long do I have to file a claim?

Investment fraud claims typically have strict time limitations. Most FINRA arbitration claims must be filed within six years of the event giving rise to the dispute. However, some states have different statutes of limitations, and certain circumstances may affect these deadlines. We recommend contacting an attorney as soon as you suspect misconduct to preserve your legal rights.

What can I recover in a broker-dealer misconduct case?

Potential recoveries may include:

  • Return of lost investment principal
  • Market-adjusted damages
  • Lost opportunity costs
  • Interest
  • Attorney’s fees and costs (in some cases)
  • Punitive damages (in cases of egregious misconduct)

Each case is unique, and recovery amounts depend on specific circumstances and evidence.

How long does the recovery process take?

The timeline varies depending on case complexity and whether it’s resolved through settlement or FINRA arbitration. Many cases settle within 12-18 months, while those requiring full arbitration may take 18-24 months. Our firm works to expedite resolution while maximizing your recovery.

What documents do I need to pursue a claim?

Helpful documentation includes:

  • Account statements
  • Trade confirmations
  • Emails or other communications with your broker
  • Account opening documents
  • Investment prospectuses
  • Tax returns showing investment losses
  • Notes from conversations with your broker

Don’t worry if you don’t have all these documents – we can help obtain necessary records during the legal process.

How much does it cost to pursue a claim?

Patil Law, P.C. handles investment fraud cases on a contingency fee basis. This means:

  • No upfront legal fees
  • No hourly charges
  • We only get paid if we recover money for you
  • Our fee is a percentage of the recovery
  • We advance all case costs

Will I have to go to court?

Most broker-dealer disputes are resolved through FINRA arbitration rather than court. This process is generally:

  • More efficient than traditional litigation
  • Less formal than court proceedings
  • Conducted in private rather than public
  • Decided by arbitrators familiar with securities laws
  • Binding on all parties

What sets Patil Law, P.C. apart in handling these cases?

Our firm offers:

  • Exclusive focus on investment fraud and securities litigation
  • Extensive experience with FINRA arbitration
  • Deep understanding of broker-dealer obligations
  • Track record of successful recoveries
  • Personal attention to each client
  • Regular case updates and communication
  • No recovery, no fee guarantee

Next Steps for Investors

If you’ve invested money through Purshe Kaplan Sterling Investments or their financial advisors and experienced losses, you may have legal recourse to recover your funds. The investment fraud attorneys at Patil Law, P.C. specialize in helping investors recover losses caused by broker-dealer misconduct and inadequate supervision. Our experienced legal team offers free consultations to evaluate your case and explain your options for recovery.

Don’t wait to protect your financial interests. Contact Patil Law, P.C. today at 800-950-6553 to speak with an investment fraud attorney about your situation. Our consultations are confidential, and we work on a contingency fee basis – meaning you don’t pay unless we recover money for you.

This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.