RICHARD SCOTT KAUFMANN is currently employed as a Broker and/or Investment Adviser at LPL FINANCIAL LLC located at 10205 LEAVENWORTH RD, KANSAS CITY, KS, 66109.
RICHARD SCOTT KAUFMANN has worked at LPL FINANCIAL LLC since November 05, 2009
RICHARD SCOTT KAUFMANN has 2 Disclosure Event(s).
Date: January 05, 2009 Category: Customer Dispute Allegations: 7/1/08-1/3/09; CLIENT STATES AFTER HIS MID-YEAR CONVERSATION WITH THE FA ASKING HIM TO MOVE HIS AMERICAN FUNDS INTO A CASH ACCOUNT, THE FA'S FAILURE TO DO THIS RESULTED IN A LOSS OF OVER $300,000. CLIENT INDICATES THE FA INFORMED HIM IF HE WANTED TO SELL HE WOULD HAVE DONE THAT. CLIENT STATES APPARENTLY HIS REPEATED ATTEMPTS TO MOVE HIS MONEY IN JULY DOES NOT QUALIFY AS A "SELL". Damage Amount Requested: $5,000.00 Broker Comment: ACCORDING TO THE FA, HE HAD SEVERAL CONVERSATIONS WITH THE CLIENT OVER THE LAST YEAR REGARDING HIS IRA. FA HAS STATED DURING THESE DISCUSSIONS HE RECOMMENDED TO STAY THE COURSE, WHICH HE HAS DONE SINCE CLIENT OPENED THE ACCOUNT IN 1995. OUR RECORDS REFLECT (PER MARCH 2009 ACCOUNT STATEMENT) CLIENT HAS INVESTED APPROXIMATELY $709,627.50 IN MUTUAL FUNDS, WITHDRAWN $1,019,400.00 AND THE VALUE OF THE MUTUAL FUNDS AS OF 3/27/09 WAS $659,898.07. BASED ON THIS INFORMATION CLIENT ACTUALLY HAS EXPERIENCED A GAIN OF OVER $969,670.57 SINCE THE INCEPTION OF THE ACCOUNT. WHILE WE CERTAINLY UNDERSTAND CLIENT'S DISAPPOINTMENT IN THE PERFORMANCE OF THE MUTUAL FUNDS HELD IN HIS ACCOUNT DURING THE LAST YEAR, WE HAVE BEEN EXPERIENCING TUMULTUOUS MARKET CONDITIONS AND FLUCTUATION IS A RISK ASSOCIATED WITH INVESTING. SINCE THE CLIENT'S ACCOUNT HAS BEEN ESTABLISHED, CLIENT HAS RECEIVED STATEMENTS WHICH PROVIDE INFORMATION REGARDING THE INVESTMENTS HELD IN HIS ACCOUNT. WHILE CLIENT'S LETTER INDICATES THE FA DID NOT FOLLOW YOUR INSTRUCTIONS TO MOVE THE MUTUAL FUNDS TO CASH, FA STATES AT NO TIME DID THE CLIENT DIRECT HIM TO MAKE CHANGES TO HIS ACCOUNT. IN ADDITION, IF THE CLIENT BELIEVES HE INSTRUCTED THE FA TO LIQUIDATE THE MUTUAL FUNDS IN THE SUMMER OF 2008, IT DOES NOT APPEAR CLIENT CONTACTED OUR FIRM UNTIL JANUARY 2009, AFTER THE SUBSTANTIAL DOWNTURN IN THE MARKET. BASED ON OUR REVIEW OF THIS MATTER, WE RESPECTFULLY DENY ANY REQUEST FOR REIMBURSEMENT OF LOSSES REALIZED OR UNREALIZED ASSOCIATED WITH THE MUTUAL FUNDS HELD IN THE CLIENT'S ACCOUNT.
Date: October 18, 2001 Category: Customer Dispute Allegations: CLIENTS CLAIM THEY INVESTED IN 5 AMERICAN FUND MUTUAL FUNDS THE FIRST PART OF 2001 AND ON THE ADVICE OF THE IR, R. SCOTT KAUFMANN, ALL THE MONIES WERE INVESTED INTO THE MARKET INSTEAD OF DOLLAR COST AVERAGING. CLIENT CLAIMS THE MARKET CONTINUED TO GO DOWN AND THEN REBOUNDED SOMEWHAT IN MAY, 2001 AT WHICH TIME THEY AGAIN INQUIRED INTO WHETHER THEY "SHOULD BACK UP AND DOLLAR COST AVERAGE". CLIENT CLAIMS THEY WERE ADVISED BY THE IR TO STAY WITH THEIR INVESTMENTS; AS A RESULT OF THE IR'S ADVICE, THEIR INVESTMENTS ARE DOWN 20%. Damage Amount Requested: $5,000.00 Broker Comment: IR INDICATED HE DID DISCUSS DOLLAR COST AVERAGING (DCA) AND THE CLIENTS HAVE UTILIZED THE DCA IN THE PAST. IR STATED HE DID NOT INFORM THE CLIENT THE MARKET HAD BOTTOMED OUT BUT DID STATE THE MARKET HAD BEEN DOWN OVER THE PAST YEAR AND IT WOULD BE UNUSUAL FOR THE MARKET TO REMAIN DOWN A SECOND YEAR IN A ROW. HE FURTHER STATED HE INFORMED THE CLIENT IF THEY HAD THE MONEY AVAILABLE TO INVEST THEY SHOULD PUT THEIR MONEY TO WORK FOR THEM AND HE RECOMMENDED INVESTING ALL OF THE ROLLOVER FUNDS. OUR RECORDS REFLECT THE APPROPRIATE BREAKPOINTS WERE REACHED. INDICATED TO CLIENT WE WOULD NOT GENERALLY ADVISE A CLIENT TO ATTEMPT TO TIME THE MARKET BY SELLING OUT OF THEIR FUNDS ONLY TO DCA BACK INTO THE FUNDS. IT APPEARS UNREALIZED LOSSES ARE DUE TO MARKET FLUCTUATION WHICH IS A RISK ASSOCIATED WITH ANY INVESTMENT. CLAIM DENIED.
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