Chad Zawacki Allegedly Recommended Unsuitable Investments

Chad Zawacki (CRD #: 2996799), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on August 22, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations 

On July 10, 2024, an investor alleged that Chad Zawacki recommended unsuitable investments and executed unauthorized transitions. They further alleged that he failed to act in the customer’s best interest and omitted material facts. The investor is seeking $350,000. 

On June 19, 2024, an investor alleged that Chad Zawacki failed to consider the suitability of certain investments. The investor sought  $166,000, but the dispute was denied by the firm. Investors should be aware, however, that firms can deny disputes without any external review. Investors can still recover following a denial.

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Unauthorized Trading

FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.

Misrepresentation 

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

Background Information 

Chad Zawacki 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 3 National Commodity Futures Examination 
• Series 7 General Securities Representative Examination 
• Series 9 General Securities Sales Supervisor – Options Module Examination 
• Series 10 General Securities Sales Supervisor – General Module Examination 

He is a registered broker in 50 states, D.C., Puerto Rico, and the Virgin Islands. He is a registered investment adviser in Minnesota, Texas, and Wisconsin. 

Chad Zawacki has registered with the following firms: 

• Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
• Ascend Financial Services (CRD #: 15296) 
• C.R.I. Securities (CRD #: 22589) 

Kurta Law Can Help 

If you worked with Chad Zawacki and you 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.