FINRA Investigates NMS Capital Advisors Broker Sperry Younger

shutterstock_123758422The securities lawyers of Gana LLP are investigating The Financial Industry Regulatory Authority’s (FINRA) investigation into broker Sperry Younger (Younger). In addition, there are at least 2 customer complaints against Younger, 6 judgments or liens, one financial matter disclosed. FINRA’s investigation relates to possible violations of NASD Rule 3010 and FINRA Rules 2010. Rule 3010 is FINRA’s rule concerning the industry’s requirement to supervise the activities of brokers. The customer complaints against Younger allege a number of securities law violations including that the broker misappropriated funds and made forged documents among other claims.

According to the disclosures, Younger recently filed for Bankruptcy in August 2015. Prior to bankruptcy filing Younger had a number of tax liens against him including a lien filed on April 2014 $3,037, a civil judgment of $9,678 on January 25, 2013, a civil judgement of $20,001 on July 11, 2012, a civil judgement of $21,890 on April 30, 2012, a civil judgement of $2,667 on March 22, 2012, and a civil judgment of $7,595 on January 10, 2012.  A broker with large liens are an important consideration for investors to weigh 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.

Younger entered the securities industry in January 1996. From May 2006 until May 2010, Younger was associated with Charles Morgan Securities, Inc. From May 2010 until October 2012, Younger was associated with John Carris Investments LLC. Thereafter, from October 2012 until April 2014, Younger was a registered representative of NMS Capital Securities, LLC (NMS). From July 2014 until April 2015, Younger was associated with Rothschild Lieberman LLC. From July 2014 until June 2015, Younger was associated with J. Streicher Capital LLC. From June 2015 until August 2015, Younger was associated with Avenir Financial Group. Finally, since October 2015, Younger has been registered with NMS out of the firm’s New York, New York office location.

The number of customer complaints against Younger is high relative to his 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.

The investment fraud attorneys at Gana LLP represent investors who have suffered securities losses due to the mishandling of their accounts. 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.