Douglas Ponczek Allegedly Recommended Unsuitable High-Yield Equities

Douglas Ponczek (CRD #: 5843395), a broker registered with UBS Financial Services, is the subject of an investor dispute, according to his BrokerCheck record, accessed on May 21, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations

On March 22, 2024, an investor alleged that Douglas Ponczek recommended unsuitable high-yield equities without discussing the risk to the underlying principal. The investor is seeking $200,000. 

Unsuitable Investments  

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or high-yield investments. These investments may lead to high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Background Information 

Douglas Ponczek has passed the following exams: 

• Series 66 Uniform Combined State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 31 Futures Managed Funds Examination 
• Series 7 General Securities Representative Examination

He is a registered broker in 25 states and is a registered investment adviser in Florida, Illinois, and Texas. 

Douglas Ponczek has registered with the following firms: 

• UBS Financial Services (CRD #: 8174) 
• Morgan Stanley (CRD #: 149777) 

Kurta Law Can Help 

If you have worked with Douglas Ponczek and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.