FINRA Case #2016049383801
Adam Stuart Fritzsche (CRD #2821218, Canterbury, Connecticut) submitted an Accept, Wavier and Consent in which he was suspended from association with any FINRA member in any capacity for one year. In light of Fritzsche’s financial status, no monetary sanction has been imposed. Without admitting or denying the findings, Fritzsche consented to the sanction and to the entry of findings that he made unsuitable recommendations to customers that were inconsistent with the customers’ investment objectives and resulted in over- concentration of their liquid net worth in an alternative investment. The findings stated that, according to its registration statement, the investment was suitable only as a long-term investment for persons of adequate financial means who had no need for liquidity.
At the time of Fritzsche’s recommendations, all of the customers were retired and had conservative investment objectives. Fritzsche’s recommendations resulted in an undue concentration of the customers’ liquid net worth in a single, high-risk, illiquid investment.
The findings also stated that Fritzsche caused his member firm’s (Citizens Securities) books and records to be inaccurate by submitting forms that misrepresented the net worth of the customers. Fritzsche attempted to circumvent the firm’s procedures, which prohibited over-concentrating customers’ liquid net worth in alternative investments, by overstating the customer’s net worth on forms he submitted to the firm on their behalf.
The suspension is in effect from March 6, 2017, through March 5, 2018. Fritzsche was discharged from Citizens Securities in June of 2016 for not disclosing tax liens in a timely manner. Fritzsche also worked for LPL Financial LLC for 13 years, from 1999 to 2012.
If you feel you have been misled by Fritzsche or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.