Brian Michael Sterz (CRD # 5333667) is a California-based investment adviser who was permitted to resign from B-Riley Wealth Management, in 2021, for failing to follow firm policies and procedures.
Since 2021, Sterz’s BrokerCheck Report shows he has been the subject of seven customer disputes. Sterz is currently facing five pending customer disputes related to overconcentrating customer accounts in FNMA, FMCC, and FNMAT. In addition to the pending complaints, Sterz has also settled two other similar complaints for $900,000 and $942,000, respectively. In total, the complaints against Sterz were seeking almost $6,000,000 in damages.
Overconcentration, or otherwise known as “failure to diversify,” is a type of financial misconduct. Overconcentration refers to a situation where an investor holds a disproportionately large amount of a particular type of security within their investment portfolio exposing it to an inappropriate amount of risk.
Overconcentration increases the vulnerability of the portfolio to the performance and volatility of that specific security or sector, making it more susceptible to potential losses. Diversification, which is the opposite of overconcentration and a fundamental principle of investing, involves spreading investments across different securities, asset classes, and industries to mitigate the risks associated with overconcentration and promote a more balanced investment approach.
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The securities and investment fraud lawyers at Meyer Wilson have the skills and experience that are specifically suited to the needs of victims of investment fraud. If you suffered losses because Sterz overconcentrated your account, contact us today for a free consultation to discuss your legal options.
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