Before you hire any professional, you do your research. You read reviews for a contractor and check a doctor’s credentials. The same diligence is essential when choosing a financial broker. Publicly available records are your first line of defense, offering a transparent look into a broker’s history. For example, a quick search reveals a pending customer complaint against LPL Financial, LLC Broker David Kujawa, alleging that he recommended an unsuitable investment. Seeing this kind of information allows you to make a more informed decision. This guide will walk you through how to use free tools like FINRA’s BrokerCheck to review a professional’s background, understand what the disclosures mean, and identify red flags before you commit your financial future to someone.

Key Takeaways

Suitability is non-negotiable: An investment must fit your specific financial situation, risk tolerance, and long-term goals. If an advisor pushes products that feel wrong for you, it’s a serious warning sign that their advice may be unsuitable.
Be proactive with your research: Before investing, use free resources like FINRA’s BrokerCheck to review a professional’s history for customer complaints or disciplinary actions. Your own due diligence is a powerful tool for protecting your assets from the start.
Trust your gut and keep good records: Consistently review your account statements for accuracy and maintain a file of all communications with your broker. If something feels off or you spot red flags, consult a securities attorney to understand your legal options.

What to Know About the Complaint Against David Kujawa

When you trust a financial professional with your money, you expect them to act in your best interest. Unfortunately, that doesn’t always happen. A recent customer complaint filed with the Financial Industry Regulatory Authority (FINRA) brings to light allegations against David Kujawa, a broker currently registered with LPL Financial LLC. This case highlights a common and serious issue investors face: unsuitable investment recommendations.

Understanding the details of such complaints is important for any investor. It shows how the system is supposed to work and what to look for in your own portfolio. The complaint against Mr. Kujawa centers on the claim that an investment he recommended years ago was not appropriate for the client’s financial situation. This isn’t just a matter of an investment performing poorly; it’s about whether the recommendation should have been made in the first place. Cases of broker fraud and negligence often begin with this fundamental mismatch, and it’s your right as an investor to question advice that doesn’t align with your stated goals.

The Allegations

The core of the complaint against David Kujawa is the allegation of an unsuitable investment. According to the FINRA report, a customer claims that a recommendation made back in 2014 was not a good fit for their specific financial objectives and tolerance for risk. This is a significant accusation. Financial advisors have a duty to understand their clients’ financial status, investment experience, and what they hope to achieve before suggesting any products. When a broker recommends an investment that is too risky or doesn’t align with your goals, they may be breaching that duty. This is a foundational responsibility, and failing to meet it can cause serious financial harm to an investor.

Current Status of the Complaint

According to public records available on FINRA BrokerCheck, the customer complaint against David Kujawa was officially filed on May 2, 2024. As of now, the complaint is marked as “pending.” This means that the regulatory body is in the process of reviewing the case, and a final resolution has not yet been reached. A pending status indicates that the claim is in the early stages of the dispute resolution process, which can include investigation and potential arbitration. It’s important to remember that an allegation is not a finding of guilt, but the fact that it has been formally filed and is under review is a serious matter for any financial professional.

Types of Investments in Question

The complaint specifically points to “unsuitable investments” that included debt securities. While many people think of debt securities, like bonds, as relatively safe, they are not without risk. Their suitability depends entirely on the individual investor’s circumstances. For example, certain types of bonds can have long maturities, be subject to interest rate risk, or have a higher risk of default. If a broker recommends such an investment to a client who needs liquidity or has a low-risk tolerance, it could be deemed unsuitable. Understanding the specific investment issues you face is the first step toward protecting your financial future.

When Is an Investment Recommendation Unsuitable?

When you work with a financial advisor or broker, you trust them to recommend investments that are right for you. But what happens when that trust is broken? An “unsuitable” recommendation occurs when a broker suggests an investment that doesn’t fit your financial situation, goals, or willingness to take on risk. It’s not just bad advice; it can be a violation of industry regulations designed to protect you. Understanding the signs of an unsuitable recommendation is the first step toward protecting your financial future.

Mismatching Your Risk Tolerance

Every investor has a unique risk tolerance—the level of market volatility you’re comfortable with. Maybe you’re a conservative investor focused on preserving your capital, or perhaps you’re willing to take on more risk for potentially higher returns. A broker’s primary responsibility is to understand and respect your profile. If you’ve made it clear that you want low-risk investments and your broker pushes you into speculative stocks or complex debt securities, that’s a major red flag. This kind of mismatch can expose your portfolio to unnecessary danger and is a classic example of broker negligence. Your financial strategy should always feel like your own, not like you’re being forced into a strategy that doesn’t fit.

Conflicting with Your Investment Goals

Your financial goals are the roadmap for your investment strategy. Are you saving for retirement, a down payment on a house, or your children’s education? Your broker should recommend products that directly support these objectives. Under regulations like the SEC’s “Regulation Best Interest,” brokers are required to act in your best interest, not their own. If a recommendation seems to generate a high commission for the broker but doesn’t align with your long-term goals, it may be unsuitable. Your portfolio should be a reflection of your life’s ambitions, and any advice that deviates from that path should be questioned. These are the kinds of investment issues that can derail your financial security.

Lacking Proper Documentation

Clear and thorough paperwork is your best friend in the world of investing. Every recommendation, transaction, and strategic decision should be properly documented. This creates a transparent record of your broker’s advice and the reasoning behind it. If your advisor is vague, avoids putting recommendations in writing, or provides incomplete documents, you should be concerned. As seen in public records on FINRA’s BrokerCheck, customer complaints often highlight a failure to align on investment strategy. Proper documentation is a key part of a broker’s professional responsibility. A lack of it can make it difficult to hold them accountable if something goes wrong and you need to pursue a securities arbitration claim.

Failing to Communicate Clearly

A healthy relationship with your broker is built on clear, honest communication. You should never feel confused about where your money is going or what risks are involved. A broker has a duty to explain investments in a way you can understand, without using confusing jargon to obscure details. If they downplay risks, rush you into decisions, or dismiss your questions, they are not fulfilling their obligation to you. You have a right to feel confident and informed about every single investment choice. If you feel like you’re in the dark or being pressured, it might be time to seek a second opinion or get in touch with a legal professional to discuss your situation.

How to Check Your Broker’s Background

Before you entrust someone with your financial future, it’s essential to do your homework. Verifying a broker’s background is a critical step in protecting your investments and ensuring you’re working with a credible professional. This isn’t about being distrustful; it’s about being a smart, proactive investor. Think of it as the financial equivalent of checking the foundation of a house before you buy it—you want to be sure everything is solid before you move your life savings in. The good news is that you don’t have to rely on a broker’s word alone. Regulatory bodies have created free and straightforward tools that give you access to a wealth of information, pulling back the curtain on a broker’s complete professional history.

Taking just a few minutes to review these public records can help you spot potential issues early on and make more informed decisions about who manages your money. You can see where they’ve worked, what licenses they hold, and most importantly, if they have a history of customer complaints or disciplinary actions. This simple act of due diligence is your first and most powerful line of defense in safeguarding your hard-earned assets from potential misconduct. It empowers you to move forward with confidence, knowing you’ve taken the right steps to protect your financial well-being and avoid the kind of problems that lead to serious financial loss.

Using FINRA’s BrokerCheck Tool

One of the most valuable resources at your disposal is FINRA’s BrokerCheck tool. This free online database from the Financial Industry Regulatory Authority allows you to search for information on current and former brokers, investment advisers, and financial firms. By simply typing in a name, you can pull up a detailed professional history that serves as a comprehensive background check. The report provides a clear snapshot of a broker’s experience, qualifications, and any reported incidents. It’s a simple yet powerful way to get an unbiased picture of the person you’re considering working with, and it should always be your first stop when vetting any financial professional.

Reading Disclosure Reports

Within a BrokerCheck report, you’ll find a section for disclosures. Pay close attention to this part. Disclosure reports detail any customer complaints, arbitrations, regulatory actions, employment terminations, or even bankruptcy filings associated with the broker. These events are significant red flags that can signal a history of broker fraud and negligence. Reading through these disclosures gives you crucial insight into past problems and helps you understand if there’s a pattern of misconduct. Don’t just skim this section; it contains some of the most important information for evaluating a broker’s trustworthiness and integrity.

Reviewing Their Professional History

A broker’s professional history can tell you a lot about their stability and experience. BrokerCheck outlines their employment history for the last 10 years, showing you which firms they’ve worked for and for how long. Frequent job-hopping or unexplained gaps in employment could be a sign of trouble. You can also see a list of their current licenses and certifications, which confirms they are legally permitted to sell certain securities or offer specific advice. This information helps you assess whether their qualifications align with your financial needs and if their career path demonstrates a record of reliability and professionalism.

Looking for Regulatory Actions

Regulatory actions are formal disciplinary measures taken against a broker by a governing body like FINRA or the SEC. These are among the most serious disclosures you can find in a report, as they indicate that a broker has violated industry rules. The details of the violation will be included in the report, giving you a clear picture of the misconduct. For instance, the public record for David Kujawa of LPL Financial shows a customer complaint. Finding a regulatory action or a history of complaints is a clear warning sign. If you have a dispute with a broker who has such actions on their record, you may need to consider a process like securities arbitration to seek resolution.

Spotting Red Flags in a Broker Relationship

Trust is the foundation of any relationship with a financial professional. You rely on your broker to provide sound advice and manage your investments with your best interests at heart. But what happens when that trust is broken? Recognizing the warning signs of a troubled broker relationship is the first step toward protecting your financial future. It’s not always about a single, dramatic event; often, it’s a pattern of subtle behaviors or questionable decisions that can signal a serious problem.

Learning to identify these red flags can help you take action before significant damage is done. From recommendations that don’t align with your goals to a sudden lack of communication, these signs are your cue to ask more questions and look closer at your accounts. Paying attention to these details empowers you to be your own best advocate and ensure your financial well-being is always the top priority.

Common Warning Signs to Watch For

Your broker has a fundamental duty to act in your best interest. Rules like the SEC’s “Regulation Best Interest” (Reg BI) legally require them to prioritize your financial needs over their own potential for a commission or other gains. A major red flag appears when their advice seems to benefit them more than you. Be wary of high-pressure tactics to invest in specific products, promises of “guaranteed” returns (which are never truly guaranteed), or an over-concentration of your portfolio in a few high-risk assets. If you feel like you’re being sold something rather than being advised, it’s time to pause and re-evaluate. These situations can sometimes be indicators of broker fraud and negligence.

Patterns of Unsuitable Investments

An investment isn’t just “good” or “bad” in a vacuum; it’s either suitable or unsuitable for you. A broker should have a deep understanding of your financial situation, age, risk tolerance, and long-term goals before making any recommendations. As seen in the complaint against David Kujawa, a key allegation was that an investment was not right for the customer’s financial profile. If your conservative retirement fund is suddenly full of speculative tech stocks or complex debt securities you don’t understand, that’s a problem. A pattern of recommending investments that don’t match your stated objectives is one of the most serious red flags you can encounter when dealing with investment issues.

Breakdowns in Communication

Clear, consistent, and transparent communication is essential. If your broker suddenly becomes difficult to reach, dodges your questions, or grows defensive when you ask for details about a specific transaction, you should be concerned. You have a right to understand how your money is being managed. A broker who can’t or won’t explain their strategy in plain language may be hiding something. If you’ve lost money and your broker is avoiding you or giving you the runaround, it may be time to seek a professional opinion on your situation. You can contact our firm for a consultation to understand your options.

Issues with Your Paperwork

Your account statements and trade confirmations are your official record. Review them carefully every single time you receive them. Discrepancies, no matter how small, can be a sign of trouble. Look for unauthorized trades, unfamiliar fees, or investments you never approved. The FINRA BrokerCheck report for David Kujawa, for example, shows a pending customer complaint. This public record is a critical piece of information. If you notice errors in your paperwork or find a complaint on your broker’s record that gives you pause, it’s crucial to address it immediately. Don’t assume it’s a simple clerical error; it could be a sign of a much larger problem.

How to Protect Your Rights as an Investor

Taking an active role in your financial future is one of the most important things you can do. While you rely on financial professionals for their guidance, staying informed and vigilant is key to safeguarding your investments. Protecting your rights starts with a few straightforward, proactive habits. By keeping good records, regularly reviewing your accounts, and maintaining clear communication, you create a strong foundation for a healthy investor-broker relationship. And if you ever feel that something isn’t right, knowing when to seek legal advice is crucial. These steps empower you to remain in control of your financial journey and address potential issues before they escalate.

Keep Detailed Records

Think of your financial records as your personal protection plan. Maintaining a thorough file of all your investment-related documents is essential. This includes monthly statements, trade confirmations, prospectuses, and any correspondence you have with your broker, including emails and handwritten notes from phone calls. Be sure to jot down the date, time, and key points of every conversation. This documentation creates a clear timeline of your broker’s recommendations and your decisions. If a dispute ever arises, these records will be invaluable for piecing together what happened and demonstrating the basis of your broker fraud and negligence claim. It’s a simple habit that can make all the difference.

Review Your Portfolio Regularly

Your broker has a duty to act in your best interest, a standard known as Regulation Best Interest (Reg BI). However, it’s still your responsibility to make sure their actions align with your goals. Set aside time each month to carefully review your account statements. Don’t just glance at the bottom line; look at the individual transactions. Are there trades you don’t recognize or didn’t authorize? Do the investments match the risk level you agreed upon? If you see something that seems off or doesn’t make sense, ask your broker for a clear explanation immediately. Consistent monitoring helps you catch errors or unsuitable recommendations early.

Set Clear Communication Standards

A healthy relationship with your broker is built on clear, consistent communication. From the very beginning, be explicit about your financial goals, your timeline, and your tolerance for risk. It’s also wise to establish expectations for how and when you’ll communicate. Do you prefer a quarterly phone call or monthly email updates? A good financial professional should actively listen and ask questions to ensure they fully understand your needs. If your broker seems evasive, dismisses your concerns, or fails to provide clear answers, consider it a serious red flag. Your peace of mind depends on open and honest dialogue about your investment issues.

Consult with a Securities Attorney

If you suspect that you’ve lost money due to your broker’s misconduct or negligence, don’t hesitate to seek a professional legal opinion. You don’t have to wait until the situation is dire. Speaking with a securities attorney can help you understand your rights and determine if you have a valid claim. An attorney can review your documents, identify potential violations, and explain your options, such as filing a claim through securities arbitration. Many firms offer initial consultations to help you assess your situation. Taking this step is a powerful way to protect your financial interests and hold accountable those who have wronged you.

What to Expect from the FINRA Complaint Process

If you believe you’ve been a victim of broker misconduct, filing a complaint with the Financial Industry Regulatory Authority (FINRA) is a formal step you can take to seek accountability. This process is designed to investigate claims of broker fraud and negligence and enforce industry rules. While it can feel intimidating, understanding the steps involved can make it more manageable. From filing the initial paperwork to navigating potential arbitration, knowing what’s ahead can help you prepare and protect your interests. The goal is to give you a clear path for addressing your concerns and holding the responsible parties accountable for their actions.

How to File a Complaint

The first step is to file a complaint directly with FINRA. You can do this through the FINRA Investor Complaint Center using their online form or by mailing in a printed version. Before you file, it can sometimes be helpful to contact the brokerage firm to see if they can resolve the issue, but this isn’t a requirement. When you file your complaint, be prepared to provide detailed information about the situation, including dates, names, and specific investments involved. FINRA will then review your complaint to determine if there have been any violations of securities laws or industry rules.

The Arbitration Process Explained

If your dispute involves seeking financial compensation for your losses, the matter will likely proceed to arbitration. FINRA’s securities arbitration forum is a dispute resolution process that serves as an alternative to going to court. It’s generally faster and less expensive than traditional litigation. In arbitration, you present your case to an impartial arbitrator or a panel of arbitrators who will listen to both sides of the story. After hearing the evidence, they will make a final, binding decision. This process is where you can formally make your case for recovering the money you lost due to misconduct.

Understanding Potential Outcomes

It’s important to have realistic expectations about the results of a FINRA complaint. When FINRA investigates, it may take disciplinary action against a broker or firm, which can include fines, suspension, or even a permanent ban from the industry. However, this disciplinary action does not automatically mean you will get your money back. Financial recovery is typically pursued through the separate arbitration process. While a successful arbitration claim can result in you being awarded compensation for your losses, it is not a guaranteed outcome. The strength of your evidence and legal arguments will be key.

A Realistic Timeline

The timeline for a FINRA complaint can vary widely. A simple investigation might conclude in a few months, but more complex cases, especially those that go to arbitration, can take a year or longer to resolve. The duration depends on factors like the complexity of the investment issues involved, the amount of evidence to review, and the schedules of everyone involved. It’s a process that requires patience. Staying organized and keeping track of all communications is crucial. If you have questions about your specific situation, it’s always a good idea to contact a securities attorney to understand your options.

Proactive Ways to Protect Your Investments

While it’s crucial to know how to react when something goes wrong, being proactive is your first and best line of defense. Taking an active role in your financial future can help you identify potential issues before they become serious problems. It’s about staying informed, asking the right questions, and knowing what to look for in your accounts and your relationship with your broker. By building these habits, you empower yourself to safeguard your hard-earned money and ensure your investments align with your personal goals. These steps don’t require you to be a financial whiz, just an engaged and attentive investor.

Performing Your Own Due Diligence

Before you entrust anyone with your money, it’s important to do a little homework. A great starting point is to ask a potential financial advisor about their fiduciary status and how they are compensated. Understanding whether they are legally obligated to act in your best interest can tell you a lot about the relationship. Don’t be shy about asking about their experience, investment philosophy, and how they communicate with clients. This initial conversation sets the tone for your entire professional relationship and helps you gauge whether their approach is a good fit for you.

Managing Your Risk

Every investment carries some level of risk, but that risk should always be one you’re comfortable with. Effective broker risk management is about identifying and addressing potential threats to your portfolio, and it’s a shared responsibility. Your broker should clearly explain the risks associated with any recommendation, but you should also be clear about your own risk tolerance. If you’re a conservative investor aiming for steady, long-term growth, your portfolio shouldn’t be filled with high-risk, speculative products. Regularly discussing your comfort level with risk ensures your investments stay aligned with your financial peace of mind.

Monitoring Your Portfolio

Your financial life isn’t static, and your investment portfolio shouldn’t be either. It’s important to regularly review your account statements and schedule check-ins with your advisor. Your financial professional should be actively listening to your needs and providing valuable insights tailored to your goals. If you notice transactions you don’t recognize or if your portfolio’s performance seems disconnected from the market, ask questions immediately. Consistent monitoring helps you catch errors or unauthorized actions early and ensures your investment strategy evolves as your life and the market change.

Knowing Your Legal Resources

Even with careful planning, investors can sometimes suffer losses due to a broker’s negligence or misconduct. If you find yourself in this situation, it’s vital to know your legal options. You don’t have to face it alone. Law firms that concentrate on securities arbitration and investment issues can provide the guidance and support you need to understand your rights. If you suspect something is wrong with your investments, consulting with a securities attorney can help you determine the best course of action to protect your financial interests.

Frequently Asked Questions

What’s the difference between an investment that performs poorly and one that’s ‘unsuitable’? It’s normal for investments to go up and down with the market, and not every loss is someone’s fault. The key difference with an unsuitable investment is that the recommendation itself was flawed from the beginning. It’s when a broker suggests a product that doesn’t match your stated financial goals, your age, or the level of risk you’re comfortable with. A poor outcome is a risk of investing, but an unsuitable recommendation is a failure of the broker’s professional duty.

I found a customer complaint on my broker’s record. Should I be worried? Finding a complaint on a broker’s public record is definitely a reason to pay closer attention. While an allegation isn’t a final judgment, it does signal that another client has raised a serious issue. You should read the details of the complaint and see if it reveals a pattern of behavior. Use it as a prompt to carefully review your own account statements and ask yourself if you’ve had any similar experiences or concerns with that broker’s advice.

If I file a complaint with FINRA, does that mean I’ll get my money back? This is a common point of confusion. Filing a complaint with FINRA can trigger a regulatory investigation, which might lead to disciplinary action like fines or a suspension for the broker. However, that process is separate from recovering your personal financial losses. To get your money back, you typically need to file a separate claim through securities arbitration, which is a formal process for resolving disputes and seeking compensation.

My broker recommended an investment years ago that has lost a lot of money. Is it too late to do anything? Not necessarily. The timelines for bringing a claim can be complex and often depend on when you discovered—or should have discovered—the potential wrongdoing, not just when the investment was first made. The fact that a recommendation was made several years ago doesn’t automatically close the door on your ability to seek recovery. If you feel an old investment was inappropriate from the start, it’s worth having the situation reviewed by a professional.

What’s the most important first step if I suspect my investment losses are due to my broker’s bad advice? The first thing you should do is gather all of your documentation. This includes account statements, trade confirmations, and any emails or notes you have from conversations with your broker. Having a clear, organized record is incredibly helpful. Once you have your paperwork in order, the next step is to get a professional opinion from a securities attorney who can review your situation and help you understand your legal options.

David Kujawa (LPL Financial): Customer Complaint Details