Rachel Heege: REIT Complaint Against Ex-National Securities Advisor

A new investor complaint filed against Lake Ronkonkoma, New York financial advisor Rachel Heege (CRD# 4834840) alleges that she engaged in misconduct relating to a real estate investment trust product. Records provided by the Financial Industry Regulatory Authority indicate that she is currently registered as a broker and an investment advisor with B. Riley Wealth Management.

Ms. Heege’s BrokerCheck report discloses one investor complaint. Filed in March 2023, it alleges that as a representative of National Securities Corporation, she “recommended speculative purchases in illiquid REITs.” The pending complaint alleges damages of $30,000.

FINRA registered representatives like Ms. Heege are beholden strict industry standards mandating that they recommend only investments that are considered appropriate for their customers’ investment objectives and backgrounds. FINRA Rule 2111 establishes this standard, referred to as the suitability standard. It states specifically that brokers must “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer’s profile, which includes their financial situation, income, net worth, risk tolerance, investment goals, and other factors. An investment in a high-risk, illiquid REIT, for example, would likely be unsuitable for a customer whose risk tolerance is low and whose investment goals are conservative. Brokers who recommend their customers invest in unsuitable products may be held liable in the event of losses.

According to the Financial Industry Regulatory Authority, Rachel Heege holds 18 years of securities industry experience. Based in Lake Ronkonkoma, New York, she has been a broker and an investment advisor with B. Riley Wealth Management since 2014 and 2022, respectively. Her past registrations include National Securities Corporation (Lake Ronkonkoma, New York; 2013-2022), Asset & Financial Planning (Lake Ronkonkoma, New York; 2013-2014), and Prime Capital Services (Lake Ronkonkoma, New York; 2004-2013). Her credentials include the passage of three securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Combined State Law Examination, or Series 66. She is licensed in Colorado, Connecticut, Florida, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, and Texas. (Information current as of April 8, 2023.)

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