Investor Alleges Andrew Goldwater Overconcentrated Their Account

Andrew Goldwater (CRD #: 866798), a broker registered with Stifel, Nicolaus & Company, allegedly overconcentrated a client, according to his BrokerCheck record, accessed on April 14, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Dispute

On March 21, 2023, an investor alleged that Andrew Goldwater recommended unsuitable investments and overconcentrated the client in speculative stocks, resulting in losses between August 2017 and December 2022. The client sought $178,376 in damages but the firm denied the dispute.

Investors should know, however, that firms don’t need to permit an outside review before denying disputes. Investors can potentially recover their losses by seeking out FINRA arbitration following a denial.

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 age, tax status, and risk tolerance when making recommendations.

This also applies to investment strategies. For example, overconcentration may be an unsuitable investment strategy for investors with a low risk tolerance.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Background Information

Andrew Goldwater 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 7 – General Securities Representative Examination

Andrew Goldwater is a registered broker in 13 states and the District of Columbia. He is a registered investment adviser in Pennsylvania and Texas.

He previously worked for Ryan Beck & Company (CRD#:3248).

Kurta Law Can Help

If you worked with Andrew Goldwater 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 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.