Our firm is investigating former Osaic Wealth broker Daniel Zlotnick (CRD# 1177472) of Melville, New York for potential investment-related misconduct involving alleged unsuitable alternative investment recommendations.
Stockbroker’s Career History
Daniel Zlotnick entered the securities industry in May 1984 with Island Planning Corp. of America. BrokerCheck shows later registrations with Empire State Securities (1992-1993), Capital Strategies Limited (1994-1995), Veravest Investments, Inc. (1995-2003), Kestra Investment Services, LLC (2003-2016), LPL Financial LLC (2016-2021), Triad Advisors LLC (2021-2024), and most recently Osaic Wealth, Inc. in Melville, New York from August 2024 through April 2026. BrokerCheck also states that he is not currently registered as a broker.
Daniel Zlotnick Fraud Allegations and Investor Complaints Explained
BrokerCheck reflects one disclosed customer dispute on Daniel Zlotnick’s record, and that matter is currently pending. According to the disclosure, the claimants allege that while associated with Kestra Investment Services, LLC, he recommended unsuitable alternative investments involving Direct Investment-DPP & LP interests. The matter was filed in FINRA arbitration on March 11, 2026, under Docket No. 26-00557, and the complaint was received on March 16, 2026. Alleged damages are listed as $5,000, with the firm stating it made a good-faith determination that the damages would exceed $5,000. No settlement amount or individual contribution amount is reported because the case remains pending.
Disclosure Summary
- Customer Dispute – Pending – FINRA Arbitration No. 26-00557; filed March 11, 2026; allegations of unsuitable alternative investments involving Direct Investment-DPP & LP interests; alleged damages of $5,000, with a good-faith determination by the firm that damages exceed $5,000; no settlement or individual contribution reported.
These are allegations only, and the reported arbitration has not been resolved. To obtain a copy of Daniel Zlotnick’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 and Suitability
FINRA Rule 2111 is the rule most directly tied to the allegations in this case because it requires a broker or associated person to have a reasonable basis to believe that a recommendation is suitable for the particular customer based on that customer’s investment profile, and it also prohibits recommending a transaction unless there is a reasonable basis to believe the customer has the financial ability to meet the commitment. Where a pending arbitration alleges unsuitable alternative investment recommendations, Rule 2111 is central to evaluating whether the product matched the investor’s objectives, risk tolerance, liquidity needs, and overall financial circumstances.
FINRA Rule 2090 and Know Your Customer Obligations
FINRA Rule 2090 requires every member to use reasonable diligence to know, and retain, the essential facts concerning each customer and the authority of any person acting on the customer’s behalf. In the context of allegations involving unsuitable alternative investments, that rule matters because a broker cannot reasonably recommend complex or illiquid products without first understanding the customer’s financial situation, investment objectives, and account needs. If an investor’s profile was not adequately understood before the recommendation was made, Rule 2090 may be implicated alongside a suitability claim.
FINRA Rule 2010 and Standards of Commercial Honor
FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade. In customer disputes built around allegedly unsuitable recommendations, Rule 2010 is often relevant because conduct that falls short of fair dealing with a customer can also violate FINRA’s broader ethical standard, even when the underlying facts are analyzed through more specific rules such as Rule 2111. Here, if the allegations concerning unsuitable alternative investment recommendations were proven, Rule 2010 could be cited as part of the overall standards-of-conduct analysis.
The Law Offices of Robert Wayne Pearce, P.A. is a nationally recognized securities law firm representing investors in FINRA arbitration and securities fraud cases on a contingency fee basis. Robert Wayne Pearce, the founding attorney, has more than 45 years of experience recovering millions for victims of broker misconduct and investment fraud. He previously defended major brokerage firms and now uses that insight to protect investors nationwide. To discuss your case directly with Mr. Pearce, call (800) 732-2889 or email pearce@rwpearce.com for a free consultation.