Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Jed Tinder (Tinder). According to BrokerCheck records Tinder has been subject to at least four customer complaints, two judgment or liens, and two employment separations for cause. The customer complaints against Tinder alleges securities law violations that includes negligence, unauthorized trading and unsuitable recommendations among other claims.
The most recent complaint was filed in August 2016, and alleged $181,668 in damages due to claims that the broker engaged in reckless trading while employed at Western International Securities, Inc. The complaint is currently pending.
In July 2016, a customer filed a complaint against Jed Tinder alleging that while employed at Western International Securities, made an unsuitable recommendation. The customer is seeking $187,000 in damages in the pending complaint. In September 2015 another customer filed a complaint that Mr. Tinder made unsuitable recommendations dating back to 2007 causing $1,200,000 in damages. The complaint is currently pending.
In July 2014, Hemstreet Development Corporation filed a civil judgment or lien totaling $262,100.64 against Jed Tinder. In addition, In July 2012, a tax lien was imposed on Jed Tinder by the Internal Revenue Service totaling to $3,861.10. A broker with large liens are an important consideration for investors to consider when dealing with a financial advisor. An advisor may be conflicted to offer high commission investments to customers in order to satisfy liens and debts that may not be in the client’s best interests.
Jed Tinder was required to resign from two previous employers. In July 1999, he was permitted to resign from his position at Edward D. Jones & Company following allegations he wrote a life insurance application outside company vendors. In May 1996, Prudential permitted Tinder to resign from his position alleging that he failed to supervise agents.
Advisors are not allowed to engage in unauthorized trading. Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.
Tinder entered the securities industry in 1984. Tinder was previously employed with Western International Securities Inc. from 2005 through 2016. The broker is not currently registered with any firm.
The number of events listed on Tinder brokercheck is high relative to her peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
Gana Weinstein LLP’s securities fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of fraud and negligence. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.