March 14, 2025 | Buffalo, NY
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Vital Information on Jason Christopher Klein
- Full Name: Jason Christopher Klein
- CRD Number: 2038304
- Current Location: Buffalo, NY
- Current Employer: UBS Financial Services Inc.
- Office Address: 250 Delaware Avenue, Buffalo, NY 14202
- Registration Status: Currently registered with 10 Self-Regulatory Organizations and 33 U.S. states/territories
- State Licenses: Multiple states including New York, Florida, Texas, and more
- Experience: In the financial industry since 1990
- FINRA BrokerCheck: Four customer disputes, including one pending complaint
- Previous Employers: McDonald Investments Inc., Key Investments Inc., Tucker Anthony Incorporated, Merrill Lynch
- Ability to Recover Losses: Investors who have suffered losses may be eligible to file FINRA arbitration claims
Investigation Overview: Pattern of Customer Complaints
Financial advisor Jason Christopher Klein, currently employed by UBS Financial Services Inc. in Buffalo, NY, has a concerning disclosure history that investors should be aware of. According to his FINRA BrokerCheck report, Mr. Klein has been named in four customer disputes over his career, with one complaint currently pending.
The most recent complaint, filed on February 6, 2025, involves serious allegations regarding unsuitable investment recommendations. According to the FINRA BrokerCheck report, a client alleges that between December 1, 2022, and July 31, 2024, they were “placed in unsuitable investments based on their age and investment knowledge and the investments were misrepresented.” The products in question include Real Estate Investment Trusts (REITs) and variable annuities, two complex investment vehicles that carry significant risks and are often subject to regulatory scrutiny.
This pending complaint follows a pattern of customer disputes throughout Mr. Klein’s career. While the damages sought in the current complaint are not specified (though estimated to exceed $5,000), previous complaints against Mr. Klein have involved substantial amounts, including one allegation of $8 million related to auction rate securities and another claim involving unauthorized transactions.
Background and Professional History
Jason Christopher Klein has been in the financial services industry for over three decades, obtaining his first securities registration in September 1990. He has been employed by UBS Financial Services Inc. since February 2007, where he currently works as a Wealth Advisor.
Mr. Klein’s employment history includes:
- UBS Financial Services Inc. (February 2007 – Present)
- McDonald Investments Inc. (May 1999 – February 2007)
- Key Investments Inc. (January 1997 – May 1999)
- Tucker Anthony Incorporated (February 1996 – January 1997)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (September 1990 – March 1996)
His regulatory record shows he is currently registered in 33 states and with 10 self-regulatory organizations. He holds several securities licenses, including Series 7 (General Securities Representative), Series 31 (Futures Managed Funds), Series 63 (Uniform Securities Agent State Law), and Series 65 (Uniform Investment Adviser Law).
Unlike many financial advisors with his experience level, Mr. Klein does not report holding any professional designations such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA).
Analysis of Disclosure Events: A Pattern of Concerns
Mr. Klein’s BrokerCheck report reveals a history of customer complaints that raise questions about his investment recommendation practices:
1. Current Pending Complaint (February 2025)
- Allegations: Unsuitable investments based on client’s age and investment knowledge; misrepresentation
- Products: REITs and variable annuities
- Status: Pending
- Timeframe: December 2022 to July 2024
2. Auction Rate Securities Complaint (July 2008)
- Allegations: Illiquidity in auction rate securities investments
- Alleged Damages: $8,000,000
- Outcome: Settled for $4,999 without any contribution from Mr. Klein
- Klein’s Statement: “The complaint arose because of unprecedented market events that caused the breakdown of liquidity in the market for auction rate securities.”
3. Unauthorized Transactions Complaint (June 2001)
- Allegations: Customer alleged unauthorized transactions in their account
- Alleged Damages: $25,000
- Outcome: Settled for $19,525.25, with Mr. Klein personally contributing the entire settlement amount
- Settlement Comment: “McDonald Investments, without admitting liability, agreed to settle this complaint”
4. Unsuitable Investment Complaint (December 2001)
- Allegations: Purchase of unsuitable bond investments
- Alleged Damages: $36,600
- Outcome: Denied by McDonald Investments, which “determined the allegations were without merit”
This pattern of complaints, spanning over two decades, raises important questions about Mr. Klein’s adherence to suitability standards and disclosure practices, particularly concerning complex investment products like REITs, variable annuities, and auction rate securities.
Understanding the Investments in Question
The pending complaint against Jason Christopher Klein involves two complex investment types that require careful consideration for retail investors:
Real Estate Investment Trusts (REITs)
REITs are companies that own, operate, or finance income-producing real estate across various property sectors. While they can provide diversification and income potential, they come with significant risks and complexities:
- Liquidity Constraints: Many non-traded REITs are highly illiquid with limited secondary markets, potentially trapping investor capital for 7-10 years.
- Valuation Challenges: Non-traded REITs can be difficult to accurately value, creating uncertainty about true investment worth.
- High Fees: REITs often carry substantial upfront fees (sometimes 7-15% of the investment), dramatically reducing the actual amount invested.
- Complex Structures: The organizational and fee structures of REITs can be extremely complex and difficult for average investors to understand.
- Market Sensitivity: Even publicly-traded REITs can be highly sensitive to interest rate changes, economic downturns, and property sector-specific challenges.
Variable Annuities
Variable annuities are insurance contracts that provide investment returns based on the performance of underlying investment options. They present their own set of risks and concerns:
- High Fees and Expenses: Variable annuities typically charge multiple layers of fees, including mortality and expense charges, administrative fees, investment management fees, and riders.
- Surrender Charges: Many variable annuities impose significant surrender penalties (often 6-8% of the investment amount) if funds are withdrawn before a specified period.
- Tax Implications: While marketed for tax advantages, inappropriate use of variable annuities can actually create tax disadvantages for certain investors.
- Complex Features: Optional riders and guarantees add complexity and cost while being difficult for many investors to fully understand.
- Suitability Concerns: These products are often inappropriate for older investors with shorter time horizons or those who may need liquidity.
The combination of these complex products in one investor’s portfolio, particularly if they were older or less sophisticated, raises serious suitability questions that form the core of the pending complaint against Mr. Klein.
Warning Signs for Investors: How to Protect Yourself
The allegations against Jason Christopher Klein highlight several red flags that all investors should be vigilant about when working with financial advisors:
1. Concentration in Complex Products
Be wary if your advisor recommends placing a significant portion of your portfolio in complex products like REITs, variable annuities, or private placements. Proper diversification across simpler, more liquid investments is often a safer approach.
2. Misalignment with Age and Time Horizon
Certain investments that involve long lock-up periods or high surrender charges may be unsuitable for older investors or those with shorter time horizons. Always ensure recommended investments align with your actual timeframe needs.
3. Inadequate Explanation of Risks
If you don’t fully understand how an investment works, including all potential risks and worst-case scenarios, don’t invest. A reputable advisor should clearly explain all material aspects of any recommendation.
4. High-Pressure Sales Tactics
Be cautious of advisors who create artificial urgency or use pressure to push you into investment decisions. Legitimate investment opportunities rarely require immediate action.
5. Failure to Provide Written Materials
Always request and review the prospectus, offering memorandum, or other written materials for any investment. Compare the written disclosures with what you were told verbally.
6. Inconsistency with Stated Goals
If the recommended investments seem disconnected from your stated financial objectives, risk tolerance, or liquidity needs, this could indicate unsuitable recommendations.
7. Multiple Regulatory Disclosures
A pattern of customer complaints or regulatory issues, even if some were resolved in the advisor’s favor, warrants additional caution and due diligence.
Legal and Regulatory Framework: Standards for Investment Recommendations
Financial advisors like Jason Christopher Klein are governed by specific regulatory requirements when making investment recommendations:
FINRA Rule 2111: The Suitability Rule
This core rule requires that brokers have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer based on information obtained through reasonable diligence. This includes:
- Reasonable-Basis Suitability: The advisor must understand the potential risks and rewards of the recommended investment.
- Customer-Specific Suitability: The recommendation must align with the customer’s investment profile, including age, financial situation, investment objectives, time horizon, and risk tolerance.
- Quantitative Suitability: A series of recommended transactions must not be excessive when taken together.
SEC Regulation Best Interest (Reg BI)
Since June 2020, broker-dealers and their representatives must adhere to a “best interest” standard when making recommendations to retail customers. This requires:
- Disclosure of all material facts about the recommendation and relationship
- Exercise of diligence, care, and skill when making recommendations
- Identification and addressing of conflicts of interest
- Establishment and enforcement of policies to achieve compliance
Investment Advisers Act Fiduciary Standard
For registered investment adviser representatives, a fiduciary duty applies, requiring:
- Duty of loyalty to clients (putting client interests ahead of one’s own)
- Duty of care in making suitable recommendations
- Full and fair disclosure of all material facts
- Avoidance or disclosure of conflicts of interest
The allegations in the current complaint against Mr. Klein potentially involve violations of these standards if investments were indeed unsuitable based on the client’s age and investment knowledge or if material facts about the investments were misrepresented.
Steps for Concerned Investors
If you are currently or were previously a client of Jason Christopher Klein and have concerns about the suitability of investment recommendations you received, consider taking these steps:
1. Review Your Account Statements and Investment Documents
Gather all statements, confirmations, disclosure documents, and communications related to your investments. Look for patterns of concentration in complex products or investments that seem inconsistent with your stated goals.
2. Assess Performance Against Benchmarks
Compare the performance of your investments against appropriate benchmarks to understand if they have underperformed. Be particularly mindful of high-fee products that may have dramatically underperformed.
3. Request Complete Fee Disclosure
Ask for a comprehensive disclosure of all fees, commissions, and expenses associated with your investments. This can reveal whether high-cost products may have been recommended when lower-cost alternatives were available.
4. Consult With a Securities Attorney
If you identify concerns, consult with an attorney who specializes in securities law and investor representation. Most offer free initial consultations to evaluate potential claims.
5. Understand Time Limitations
Be aware that FINRA arbitration claims generally must be filed within six years of the events giving rise to the dispute. However, certain circumstances may reduce this timeframe, making prompt action essential.
6. Consider Regulatory Reporting
If appropriate, you may want to report your concerns to regulators such as FINRA or your state’s securities division, which can investigate potential violations.
How Our Securities Attorneys Can Help
If you’ve suffered investment losses while working with Jason Christopher Klein or any financial advisor, our experienced securities attorneys can help you evaluate your options for recovery. We offer:
- Free Case Evaluation: Our securities attorneys will review your investment documents and history at no cost to determine if you have a viable claim.
- Contingency Fee Representation: We typically work on a contingency basis, meaning you pay no legal fees unless we recover money for you.
- FINRA Arbitration Expertise: Our attorneys are experienced in navigating the FINRA arbitration process, the primary forum for resolving investor disputes.
- Forensic Account Analysis: We conduct detailed forensic analysis of your accounts to identify potential violations, unsuitable recommendations, or other misconduct.
- Access to Securities Experts: We work with industry experts who can provide professional opinions on suitability, appropriate disclosures, and industry standards.
- Maximum Recovery Focus: We pursue all available avenues for recovery, including claims against both individual advisors and their employing firms when appropriate.
Don’t wait if you believe you’ve been harmed by unsuitable investment advice or misrepresentations. Contact our securities fraud attorneys today to protect your rights and explore your options for recovery. Call 800-950-6553 now or complete our online form to schedule your confidential consultation with no obligation.
