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Investor Alleges Alex Pritsker Recommended Unsuitable Variable Annuity Exchange

Nov 17, 2022 Unsuitable Investments

Alex Pritsker (CRD #: 2509622), a broker registered with Lincoln Financial Advisors, was recently involved in an investor dispute, according to his BrokerCheck record, accessed on November 13, 2022. If you want to know more about his conduct as a broker, read on.

Investor Dispute

On August 30, 2022, an investor alleged that Alex Pritsker recommended an unsuitable variable annuity exchange in November 2018. The investor sought $250,000, but the dispute was denied by the firm.

Investors should know, however, that firms don’t need to allow an outside review before denying a dispute. Investors can still seek out FINRA arbitration after a denial and may be able to recover their losses.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

  • High-risk investments may be unsuitable due to their likelihood of losing money.
  • Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
  • Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
  • Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Background Information

Alex Pritsker 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

Alex Pritsker is a registered broker in nine states and a registered investment adviser in New Jersey and Texas.

He has also worked for Pruco Securities (CRD#:5685) and Prudential Securities (CRD#:7471).

Kurta Law Can Help

If you worked with Alex Pritsker and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.