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Chad Schiel Faces Allegations Involving Overconcentration of Funds in Illiquid Assets

Nov 16, 2021 Investor Disputes

Chad Schiel (CRD #:5706184), a registered broker and investment advisor with Independent Financial Group is involved in an investor dispute, according to his BrokerCheck record, accessed on October 27, 2021. Keep reading for more details regarding the allegations.

Investor Allegations

On September 1, 2021, an investor filed a dispute alleging that Chad Schiel over-concentrated funds in illiquid assets and recommended unsuitable investments. The investor is seeking $150,000, the dispute is still pending.

What is Overconcentration?

Overconcentration occurs when a broker concentrates an investor’s portfolio in one security, or in one industry sector, exposing the investment portfolio to an inappropriate degree of risk which can lead to devastating losses.

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. 

  • 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.

Brokers are required to have a reasonable basis for recommending an investment according to FINRA Rule 2111. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

Chad Schiel Background Information

Chad Schiel has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Chad Schiel is a registered broker in 12 states. He is a registered investment adviser in California. 

Besides Independent Financial Group, Chad Schiel has worked with the following firm: 

  • Edward Jones (CRD#:250)

Kurta Law Can Help

If you have worked with Chad Schiel and you 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. Please contact us today if you would like us to evaluate your potential case.