Last Updated: November 2024 (Miami, Florida)
National securities fraud lawyers at Patil Law P.C. are investigating UBS Financial Services broker Barry Schwartz (CRD #1022377), who faces a pending $1 million FINRA arbitration alleging unsuitable recommendations and overconcentration in risky investments.
Critical Insights About Miami, FL Financial Advisor Barry Schwartz
- Advisor Name: Barry Allen Schwartz
- CRD: 1022377
- Location: Miami, FL
- Current Employer: UBS Financial Services Inc.
- Classification: Financial Advisor
- Primary Location: Miami, FL
- Can Barry Schwartz be sued in FINRA arbitration: Yes
- Recent Customer Dispute: Pending $1 million FINRA arbitration
- Prior Regulatory Action: Florida cease and desist order
Current Customer Dispute Details
FINRA Arbitration Filed December 2023
- Allegations: Unsuitable recommendations and overconcentration
- Time Period: January 2021 to February 2022
- Products: Equities and alternative investments
- Alleged Damages: $1,000,000
- Case Status: Pending (FINRA Case #23-03449)
Prior Regulatory and Customer Issues
Florida Securities Division Action (2013)
- Conducting unregistered investment advisory business
- Resulted in cease and desist order
- $22,500 administrative fine imposed
- Order Number: 0267-SR-06/13
Prior Customer Dispute (1998)
- Allegations: Unsuitable limited partnership investments
- Settlement Amount: $14,000
- Individual Contribution: $14,000
- Resolution: Mediated settlement
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
The SEC’s Regulation Best Interest establishes a heightened standard of conduct requiring investment recommendations to be in the client’s best interest. This regulation specifically prohibits overconcentration of investments and requires thorough documentation of the rationale for recommending complex or risky investments. For alternative investments like those at issue in Schwartz’s current case, advisors must demonstrate particular care in ensuring recommendations align with client risk tolerance and investment objectives.
FINRA Rules and Their Significance
FINRA Rule 2111 (Suitability) mandates that brokers have a reasonable basis for believing their recommendations are suitable for clients based on their investment profile. The rule requires analysis of factors including client age, financial situation, risk tolerance, and investment objectives. For complex products like alternative investments, enhanced due diligence and suitability analysis are required.
FINRA Rule 2090 (Know Your Customer) operates alongside the suitability rule by requiring firms to understand the essential facts about each customer. This includes understanding their financial situation, tax status, investment objectives, and other information necessary for proper account servicing.
FINRA Rule 3110 (Supervision) requires firms to establish and maintain systems to supervise their representatives’ activities. This includes monitoring for overconcentration and ensuring proper diversification of client portfolios based on stated investment objectives.
Florida Securities Laws
Florida Statutes Section 517.12 requires investment advisor registration with the state. Schwartz’s prior regulatory violation highlights the importance of proper registration and compliance with state securities regulations. The state’s enforcement action demonstrates Florida’s active role in protecting investors through licensing requirements.
Professional Background
Schwartz’s career spans four decades:
- UBS Financial Services Inc. (2013-Present)
- Sanford C. Bernstein & Co. (2008-2013)
- Nationwide Investment Services (1999-2006)
- Various other firms since 1983
Professional Qualifications:
- Series 24 (General Securities Principal)
- Series 7 (General Securities Representative)
- Series 31 (Futures Managed Funds)
- Series 65 (Investment Adviser Law)
- Series 63 (Uniform Securities Agent)
Red Flags for Investors
- Current Large Arbitration – $1 million in alleged damages
- Prior Regulatory Action – Unregistered advisory activity
- Historical Customer Dispute – Unsuitable investments
- Portfolio Management Issues – Overconcentration claims
- Complex Product Sales – Alternative investment concerns
Implications for Current and Former Clients
Investors should review their accounts for:
- Overconcentration in specific investments
- Unsuitable alternative investments
- Risk levels exceeding stated objectives
- Unauthorized trading activity
- Undisclosed fees or charges
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have concerns about investments made with Barry Schwartz, contact Attorney Patil at (800) 950-6553 for a free consultation. Cases handled on contingency – no recovery, no fee.
