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Kristi Berge of KSI Financial Charged with Fraud for Misappropriating $1.6 Million in Client Funds

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Updated on: March 6, 2024

National investment loss lawyers KlaymanToskes is investigating financial advisor Kristi Berge (CRD# 5009693) of KSI Financial (“Keep Safe Investments”), who is facing charges of wire fraud following allegations of misappropriating $1.6 million in client investment funds, as announced by the U.S. Attorney’s Office for the District of Minnesota.

According to the SEC’s AdviserInfo, financial advisor Kristi Berge was previously registered with KSI Financial from 2013 to 2023 in Edina, MN.

Investors that suffered losses with advisor Kristi Berge are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Fraud Allegations Against Kristi Berge of KSI Financial and J&K Connect:

From June 2020 through February 2023, Berge purportedly fraudulently misappropriated approximately $1.6 million from several of her clients’ accounts by falsely representing that she would maintain her clients’ funds in safe and secure investment accounts, including individual retirement accounts (IRAs) and 401(k) retirement savings plans. Berge also co-owned and operated J&K Connect LLC, a company focused on investing in real estate through buying and reselling properties.

Berge allegedly carried out the fraud by repeatedly withdrawing funds from client accounts, ranging from $5,000 to $220,000, and depositing them into her controlled bank accounts. Subsequently, she allegedly used the clients’ funds to purchase multiple properties in Edina, MN, for her real estate business. Berge purportedly attempted to conceal her actions by falsely categorizing the withdrawals as “management” or “administrative” fees, and by fabricating records to justify withdrawing clients’ investment funds.

Seeking Recovery: How KlaymanToskes Helps Investors

The Securities and Exchange Commission (“SEC”)’s Regulation Best Interest, or “Reg BI”, under the Securities Exchange Act of 1934, establishes a “best interest” standard of conduct for brokers/investment advisors and investment firms making recommendations of securities investments and investment strategies to their clients. 

Brokers/investment advisors and their firms are responsible for providing suitable investment advice and must act in the best interest of their customers. Further, Investment firms may be held liable for any losses incurred by their customers in the event of fraudulent or unsuitable investment recommendations, misrepresentations or omissions of material facts, and/or conflicts of interest

If you suffered losses with advisor Kristi Berge, or have concerns regarding your investment portfolio at KSI Financial, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss your recovery options. 

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters.KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com