$100K REIT Complaint Against Peak Financial’s Kenneth Beber

San Dimas, California broker and financial advisor Kenneth Beber (CRD# 4257664) allegedly recommended an unsuitable investment, according to a pending investor complaint. Financial Industry Regulatory Authority records show that he is a representative of Peak Financial, offering securities through Independent Financial Group. 

Filed in January 2022, the pending investor complaint listed on Mr. Beber’s BrokerCheck report alleges that as a representative of Independent Financial Group, he recommended a non-traded real estate investment trust (REIT) that “was not in line with [the] client’s stated objectives.” The pending complaint alleges damages of $100,000. A comment on the disclosure states: “Preliminary investigation does not reveal evidence to support claims. Firm intends to defend claim as without merit.”

For reference, FINRA rules stipulate that brokers like Kenneth Beber must abide the suitability standard, recommending only investments that are considered suitable to their customers’ investment profiles. This includes such factors as the investor’s goals, investment experience, age, net worth, income, and risk tolerance. FINRA has also released multiple investor alerts warning that the risks associated with non-traded REITs—that is, REITs not traded on national stock exchanges—may make them unsuitable for investors. “For this reason, non-traded REITs are generally illiquid, often for periods of eight years or more,” states a 2016 investor alert, going on to explain that non-traded REITs may have limited early redemption opportunities, high fees, and distributions that “include a return of investor principal.”

A second disclosure on Mr. Beber’s BrokerCheck report notes that National Planning Corporation fired him in 2011 over allegations he violated firm policy by using discretion to buy stock in a customer’s account. A Broker Comment on the disclosure states, “Representative had discussed stock purchase with client a week prior to stock purchase. Unfortunately, client did not recall the conversation when asked. Representative had notes to evidence that the conversation had occurred.”

According to the Financial Industry Regulatory Authority, Kenneth Beber holds 21 years of securities industry experience. He has been a representative of Independent Financial Group, doing business as Peak Financial, in San Dimas, California since 2011. His past registrations include Investors Capital Corp. (San Dimas, California; 2011) and National Planning Corporation (West Covina, California; 2000-2011). His credentials include the passage of five securities industry qualifying exams: the Uniform Combined State Law Examination, or Series 66; the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; and the Investment Company Products/Variable Contracts Representative Examination, or Series 6. He holds 18 state licenses. (Information current as of May 17, 2022.)

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