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James Schwarz is the Subject of Overconcentration Allegations

James Schwarz (CRD #: 416535), a broker registered with UBS Financial Services, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on December 8, 2023. Keep reading if you have questions regarding his alleged conduct. 

On September 12, 2023, an investor’s attorney alleged that James Schwarz recommended a portfolio of high-risk preferred securities. The attorney argued that this was an unsuitable investment strategy for his client and that the portfolio was overconcentrated. The attorney further alleged that his client was repeatedly informed their investments were safe. 

The dispute was denied, but investors should note that firms can deny a dispute without any external review. It is still possible to recover losses following a denial, through mediation or FINRA arbitration. Our securities attorneys can evaluate your position and determine if you have a case. 

Unsuitable Overconcentration 

FINRA Rule 2111 prohibits unsuitable investment recommendations. Overoncenrated investments are often unsuitable because they expose the investor to unnecessary risk. Brokers are required to consider their investor’s risk tolerance when they make recommendations. 

Diversified portfolios expose investors to a broader swath of the market and lessen the chance that an investor will suffer major losses following a drop in share prices for a particular stock or sector. Investors who rely on brokers for recommendations may be able to recover losses following overconcentration by pursuing FINRA arbitration.

Background Information 

James Schwarz has passed the following exams: 

  • Series 63 Uniform Securities Agent State Law Examination 
  • Series 7TO General Securities Representative Examination 
  • SIE – Securities Industry Essentials Examination 
  • PC – Amex Put and Call Exam 
  • Series 1 Registered Representative Examination 
  • Series 24 General Securities Principal Examination 
  • Series 40 Registered Principal Examination 

He is a registered broker in 30 states and D.C. He is also a registered investment adviser in New Jersey and Texas. 

James Schwarz has registered with the following firms: 

  • UBS Financial Services (CRD #: 8174) 
  • Morgan Stanley (CRD #: 149777) 
  • CitiGroup Global Markets (CRD #: 7059) 
  • Lehman Brothers (CRD #: 7506)
  • E.F. Hutton (CRD #: 235) 
  • Dupont Walston (CRD #: 870) 

Kurta Law Can Help 

If you have worked with James Schwarz and have concerns about your investments, do not hesitate to contact us 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 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.