Chad Zawacki Involved in Denied Trading Disputes
Chad Zawacki (CRD# 2996799), a broker registered with Merrill Lynch, recommended unsuitable investments, according to denied customer disputes. MDF Law is investigating the St. Paul, Minnesota-based financial professional for similar conduct. If you have concerns about your accounts, call us today for a free consultation.
This post contains additional details about the allegations against Mr. Zawacki and his professional history. The information below is based on a September 25, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Merrill Lynch Denied Disputes Involving Chad Zawacki
In June and July 2024, two parties of investors lodged disputes involving Mr. Zawacki. These disputes included allegations of unsuitable investment recommendations, unauthorized trading, and omission of material facts related to an investment recommendation. One dispute sought $350,000 in alleged damages, while the other sought $166,000. In August 2024, Merrill Lynch denied both claims.
Industry Rules Prohibit Unauthorized Trading
Generally speaking, three vital FINRA rules forbid unauthorized trading. First and foremost is FINRA Rule 2010, which establishes that registered representatives must observe high standards of commercial honor and just and equitable principles of trade. Second is FINRA Rule 3260, which prohibits the exercise of discretionary trading—that is, transactions made without first consulting the customer—absent the customer’s prior written authorization and the firm’s written approval. Finally, FINRA Rule 2020 prohibits brokers from employing “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” to effect or induce securities transactions. To learn more about these and other securities industry rules, visit FINRA’s website.
What Is Regulation Best Interest?
The Securities and Exchange Commission’s Regulation Best Interest establishes a requirement that brokers act in the best interest of their customers. Passed in 2019, the regulation sets a standard similar to the fiduciary duty that advisers owe their clients, though it is not quite as strict. Perhaps most its important requirement is that brokers disclose certain information about the recommendation and their relationship with the customer; they must also “exercise reasonable diligence, care, and skill” regarding any potential risks and rewards of the recommendation. The regulation also requires broker-dealer firms to create policies to mitigate conflicts of interest and achieve regulatory compliance.
What Is the MZKCD Group?
According to Merrill Lynch’s website, Mr. Zawacki is a member of the MZKCD Group, a practice within the firm. “Chad believes the relationships he builds with clients can impact their lives for decades,” reads his biographical statement on the page. “Through multiple economic cycles and significant life events, Chad has been unwavering in his commitment to help clients pursue the goals they have for themselves, their family or for their business.”
FINRA: Broker Based in St. Paul, Minnesota
Chad Zawacki launched his career as a broker in January 1998. That year, he registered with C.R.I. Securities’ office in St. Paul, Minnesota, as well as Ascend Financial Services’ office in the same city. He left both in March 1998, a month after he registered with Merrill Lynch’s office in St. Paul, where he has remained since. Boasting 26 years of experience as a broker, he has completed seven industry exams, including the Series 9 and the Series 10.
Investment Complaints? At MDF Law, We Have Your Back
If you lost money on investments recommended by Chad Zawacki, please call MDF Law. Our seasoned broker fraud attorneys have recovered more than $100 million in investment losses for our clients. We offer free, confidential consultations across the United States and only receive a fee if you win your case. Call us at 800-767-8040 to chat with a lawyer today.