Eric Schwartz Allegedly Recommended Unsuitable Investments

Eric Schwartz (CRD #: 3140360), a broker registered with Kinecta Financial & Insurance Services, is involved in an investor dispute, according to his BrokerCheck record, accessed on August 14, 2023. Details concerning the allegations are provided below. 

On June 27, 2023, an investor alleged that Eric Schwartz recommended unsuitable investments from July 17, 2014, thru March 29, 2023. The investor is seeking $50,000. 

FINRA Rule 2111 

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

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
• 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 illiquid investments. These investments may lead to losses or 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 

Eric Schwartz has passed the following exams: 

• Series 66 Uniform Combined State 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 

He is a registered broker in 28 states and is a registered investment adviser in California and Washington. 

Eric Schwartz has registered with the following firms: 

• Kinecta Financial & Insurance Services (CRD #: 136597) 
• LPL Financial (CRD #: 6413) 
• First Brokerage America (CRD #: 43431) 
• Cuso Financial Services (CRD #: 42132) 
• Cal Fed (CRD #: 19631) 
• Dreyfus Investment Services (CRD #: 17477) 
• Dreyfus Financial Services Corporation (CRD #: 42430) 
• Vanguard Marketing Corporation (CRD #: 7452)

Kurta Law Can Help

If you worked with Eric Schwartz and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 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.