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Investor Claims Donald Kowalsky Recommended Unsuitable REITs

Donald Kowalsky (CRD #: 274546), a broker registered with Cambridge Investment Research, is involved in an unsuitability dispute, according to his BrokerCheck record, accessed on February 20, 2022. He is also an investment advisor registered with Cambridge Investment Research Advisors.

Investor Allegations

On December 3, 2021, an investor filed a dispute alleging Donald Kowalsky made unsuitable recommendations of illiquid and risky REITs. The total damage requested is $52,000一the dispute is still pending.

What are REITs?

A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. By putting their money into a REIT, investors can own a share of those properties. A REIT could contain anything from office buildings and other commercial units to apartment buildings or healthcare facilities. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments.

If you lost money in unsuitable REITs, you might have a viable claim against your broker, and you should not hesitate to contact the securities attorneys of Kurta Law. 

Unsuitable Investments

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 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.

Prior Dispute

On October 24, 2014, Donald Kowalsky was involved in an investor dispute alleging violation of common law, fraud, breach of fiduciary duty, failure to supervise, and negligence in the sale of $114,449 DBSI 2008 notes. The case was settled for $50,000.

Background Information

Donald Kowalsky has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 53 – Municipal Securities Principal Examination
  • Series 24 – General Securities Principal Examination
  • Series 00 – General Securities Principal Examination

Donald Kowalsky is a registered broker in 13 states. He is also a registered investment advisor in Texas and Georgia. 

Donald Kowalsky has also worked with the following firms:

  • Questar Asset Management  (CRD#:133358)
  • Questar Capital Corporation (CRD#:43100)
  • Symetra Investment Services (CRD#:19061)
  • Interpacific Investors Services (CRD#:4879)
  • The Lincoln National Life Insurance Company (CRD#:2580)
  • Hartford Equity Sales Company (CRD#:6604)
  • Lincoln National Pension Insurance Company (CRD#:10293)
  • Monarch Securities (CRD#:2809)
  • The Great-West Life Assurance Company (CRD#:5927)
  • Lincoln Financial Advisors Corporation (CRD#:3978)

Kurta Law Can Help

If you have worked with Donald Kowalsky and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.