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David Alvarado Allegedly Executed Unauthorized Trades

May 5, 2023 Excessive Trading

David Alvarado (CRD #: 6546895), a broker formerly registered with SW Financial, is named in two pending investor disputes, according to his BrokerCheck record, accessed on April 27, 2023. If you have questions about his alleged conduct as a broker, keep reading.

Investor Disputes

A dispute filed on March 3, 2023, named David Alvarado in allegations of the following:

This pending dispute seeks $30,000 in damages.

A similar dispute, filed on March 21, 2022, named David Alvarado in allegations of fraud, breach of contract, and negligence, as well as unauthorized and excessive trading, charging of excessive commissions, and other violations of suitability. This pending dispute seeks $59,602.15 in damages.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes their risk tolerance, age, and other characteristics.

Trading activity can also be quantitatively unsuitable. An excessive number of trades generates trading fees and commissions that can cut into clients’ returns so severely that the investor doesn’t make any profit.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What is broker negligence?

Many types of broker misconduct may qualify as negligence, including excessive trading, unsuitable investment recommendations, and failure to supervise other brokers.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration

Criminal Charge

On March 12, 2019, David Alvarado pled guilty to a misdemeanor charge.

Background Information

David Alvarado has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

He previously worked for the following firms:

  • SW Financial (CRD#:145012)     
  • Worden Capital Management (CRD#:148366)
  • National Securities Corporation (CRD#:7569)

Kurta Law Can Help

If you worked with David Alvarado 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.