DID PETER ALEX MALLOUK CAUSE YOU INVESTMENT LOSSES?
About Peter Mallouk of Creative Planning?
Peter Mallouk (CRD #4508063) , located in Leawood, Kansas, is an experienced investment advisor and former broker. He has held leadership roles, including serving as the President of Creative Planning, LLC, a leading investment advisory firm. His career spans several decades, during which he passed notable examinations such as the Series 65 and Series 63, demonstrating expertise in state securities laws and investment advisory services.
Investment Losses? Let’s talk.or, give us a ring at (800) 732-2889.
Peter Mallouk Customer Complaints and Reviews
1 Regulatory Action
- Type: Regulatory Final Order
- Initiated By: United States Securities and Exchange Commission (SEC)
- Date: September 18, 2018
- Allegations: Violations of the Investment Advisers Act of 1940 by Creative Planning, Inc., including:
- Use of prohibited client testimonials in radio advertisements.
- Failure to enforce the firm’s Code of Ethics concerning advertisement reviews and reporting securities accounts.
- Inadequate maintenance of accurate books and records.
- Lack of written policies and procedures to prevent violations of the Advisers Act.
- Resolution: A cease-and-desist order was issued. Mr. Mallouk was fined $50,000, which was paid in full. Creative Planning, Inc. was fined $200,000.
Allegations Against Peter Mallouk
- Regulatory Allegations:
- The SEC alleged improper practices by Creative Planning, Inc., including:
- Distributing client testimonials in live and recorded radio advertisements, which violated advertising rules under the Investment Advisers Act.
- Failing to monitor or retain advertisements for compliance with regulations.
- Mr. Mallouk was also found to have failed to report securities holdings in accounts benefiting his family, contravening the firm’s Code of Ethics.
The allegations led to a civil penalty for both Creative Planning, Inc. and Mr. Mallouk, emphasizing the importance of adherence to ethical standards and regulatory compliance in investment advisory services.
Peter Mallouk Employment History
- Employment History:
- President at Creative Planning, LLC (1998–Present).
- Managing Member at Creative Planning Advisor Services, LLC (2015).
- Managing Member at NextEdge, LLC (2017–2018).
- Registrations:
- Purshe Kaplan Sterling Investments (08/2009–04/2010).
- New England Securities (04/2002–04/2004).Not currently registered.
- Not currently registered
- Examinations Passed:
- Series 7: General Securities Representative Examination (08/28/2009).
- Series 63: Uniform Securities Agent State Law Examination (07/18/2009).
- Series 65: Uniform Investment Adviser Law Examination (11/20/2001).
Investment Advisors Owe Clients The Highest Level Of Care
Investment advisors have a fiduciary duty to act in the best interests of their clients. This includes:
- Duty of Care: Advisors must ensure that investment strategies align with clients’ financial goals, risk tolerance, and overall suitability.
- Duty of Loyalty: Advisors must disclose potential conflicts of interest and avoid prioritizing personal gain over client interests.
- Full Disclosure: Advisors are obligated to clearly communicate the risks, costs, and mechanics of recommended investment strategies.
Upholding fiduciary responsibilities fosters trust and helps protect clients from unnecessary risks or unethical practices.
Option Trading Can Be Extremely Risky
Options trading is inherently risky and may involve significant potential for loss:
- High-Risk Strategies:
- Selling Naked Calls: Exposes the investor to unlimited losses if the underlying asset price rises significantly.
- Straddles and Strangles: Require large market movements to be profitable, making them speculative.
- Example:
- A naked strategy involves selling options without owning the underlying security, potentially resulting in large losses if the asset price falls.
- Considerations for Clients:
- Clients should fully understand the complexities and risks associated with options trading.
- Advisors must evaluate whether such strategies are suitable based on the client’s financial situation and objectives.
Peter Mallouk Red Flags & Your Rights As An Investor
Of course, Peter Mallouk did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Creative Planning on alert to review carefully the activity and performance of their accounts and question whether Peter Mallouk has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Creative Planning also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.
Did You Lose Money Because of Broker Misconduct?
If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses.
Need Legal Help? Let’s talk.or, give us a ring at 561-338-0037.
File A Claim To Recover Your Investment Losses At Creative Planning Due To Peter Mallouk
If you have questions about about Creative Planning and/or Peter Mallouk and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.
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