As a financial analyst and legal expert with over a decade of experience, I understand the seriousness of allegations like those leveled against Jason Lowther, a broker registered with Concorde Investment Services. According to an investor dispute, Mr. Lowther recommended an unsuitable bond investment – a serious claim that, if substantiated, would constitute a clear breach of his fiduciary duties.
The pending dispute, which seeks $125,000 in damages, deserves close scrutiny. Advising a client to invest in bonds that are not aligned with their investment objectives, risk tolerance, or financial situation is more than just poor judgment; it violates the trust that is the bedrock of the client-advisor relationship. As Warren Buffett famously said, “Risk comes from not knowing what you’re doing.” If the allegations prove true, Mr. Lowther failed in his fundamental obligation to understand and mitigate risk on behalf of his client.
This is not the first time Mr. Lowther has faced such accusations. In 1997, an investor alleged that he omitted material facts, breached his fiduciary duty, and made an unsuitable recommendation. While the NASD panel ultimately awarded the claimant a relatively modest sum of $1,310, the mere existence of this prior complaint suggests a troubling pattern that may warrant further investigation. Financial advisor complaints like these are not uncommon, and investors should be vigilant in monitoring their investments and the conduct of their advisors.
Industry Rules Exist to Protect Investors
The securities industry has established clear rules and standards governing an advisor’s duty to act in their client’s best interests. The SEC’s fiduciary duty rule requires investment managers to prioritize their clients’ interests above their own. Similarly, FINRA Rule 2111 obligates brokers to have a “reasonable basis to believe” their recommendations are suitable based on a client’s profile, including their investment goals, risk tolerance, and financial situation.
The Financial Advisor’s Background
Jason Lowther (CRD# 2738577) entered the securities industry in 1995, registering with Investors Associates in Hackensack, New Jersey. Over his 27-year career, he has been associated with several firms, including Meridian Capital Group, Wachovia Securities, VSR Financial Services, and Western International Securities. He joined his current firm, Concorde Investment Services, in 2021 and operates out of their Ann Arbor, Michigan office under the name “DST 1031 Connect”.
It’s worth noting that, according to a 2019 CNBC article, roughly 30% of financial advisors have faced customer disputes or disciplinary actions during their careers. While this does not excuse misconduct, it underscores the importance of thoroughly vetting any prospective advisor and staying alert to red flags. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, as highlighted in a recent Forbes article on how to spot a Ponzi scheme and avoid investment fraud.
Consequences and Lessons
If the allegations against Mr. Lowther are borne out, he could face serious consequences, including fines, suspension, or even a bar from the securities industry. Beyond regulatory penalties, he would also be liable for any financial harm suffered by his client. Most importantly, this case serves as a cautionary tale for investors about the crucial importance of working with trustworthy, reputable financial professionals who place their clients’ interests first.
At the end of the day, the client-advisor relationship is built on trust. Any violation of that trust is unacceptable. As a legal and financial expert, my role is to shed light on these issues, demystify complex regulations, and empower everyday investors to protect their rights and financial well-being. If you have suffered losses due to broker misconduct, I urge you to consult with an experienced attorney to explore your legal options.
