Larry Schwartzman Allegedly Churned Client’s Accounts
Larry Schwartzman (CRD #: 1289701), a broker registered with Oppenheimer & Company, allegedly engaged in excessive trading, according to his BrokerCheck record, accessed on February 3, 2023. If you have questions about his alleged conduct as a broker, read on.
On October 6, 2022, an investor filed a dispute alleging that Larry Schwartzman executed unauthorized trades, engaged in excessive trading, and made unsuitable investments in the client’s accounts between December 2019 and September 2021.
The client seeks $64,000 in damages in this pending dispute.
FINRA Rule 3260
FINRA Rule 3260 limits brokers to exercising their trading discretion in pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, tax status, and age when making recommendations.
Excessive trading, or churning, violates this rule by being quantitatively unsuitable. In other words, brokers must also consider the suitability of their overall trading activity when recommending or executing trades in a client’s account.
Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.
Larry Schwartzman has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 3 – National Commodity Futures Examination
- Series 7 – General Securities Representative Examination
Larry Schwartzman is a registered broker in 12 states and the District of Columbia. He is also a registered investment adviser in the District of Columbia.
He has also worked for the following firms:
- Wells Fargo Clearing Services (CRD#:19616)
- Ferris, Baker Watts (CRD#:285)
- Citigroup Global Markets (CRD#:7059)
- Lehman Brothers (CRD#:7506)
- E. F. Hutton & Company (CRD#:235)
Kurta Law Can Help
If you worked with Larry Schwartzman and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.