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Adam Wass Involved in a Dispute Regarding Unsuitable BDCs 

Mar 17, 2022 Business Development Company

Adam Wass (CRD #:1586317), a broker and investment advisor registered with LPL Financial, was the subject of a dispute involving unsuitable Business Development Corporation (BDC) recommendations, according to his BrokerCheck record, accessed on March 2, 2022. 

Investor Allegations

According to the allegations filed on November 9, 2021, Adam Wass recommended two business development companies that were unsuitable. The investor sought to have the current value of investments returned to her, but the firm denied the case. Investors should know that they can still recover their losses following a denial. Speak to a securities lawyer if you have questions about what steps to take next. 

What are BDCs?

FINRA defines a Business Development Company (BDC) as a domestic, closed-end investment company that is operated for the purpose of making equity and debt investments in small and developing businesses, as well as financially troubled businesses. BDCs can be speculative investments that involve significant risks. As a result, BDC investments may not be suitable for all investors.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information

Adam Wass has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination
  • Series 3 - National Commodity Futures Examination
  • Series 24 - General Securities Principal Examination

Adam Wass is a registered broker in 23 states. He is also a registered investment adviser in California and Texas.

Besides LPL Financial, Adam Wass has worked with the following firms:

  • CUNA Brokerage Services (CRD#:13941)
  • CUSO Financial Services (CRD#:42132)
  • WM Financial Services  (CRD#:599)
  • Great Western Financial Securities Corporation (CRD#:14229)
  • Glenfed Brokerage Services (CRD#:13648)
  • Mutual Of Omaha Fund Management Company (CRD#:611)

Kurta Law Can Help

If you have worked with Adam Wass and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.