The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Keith Singer (Singer). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Singer has been subject to two customer disputes, one of which is still pending. The majority of these complaints involve the execution of unauthorized trades and misrepresentation of investments. In addition, Singer has been subject to termination from employment.
In January 2018, a customer alleged that Singer misrepresented the features and nature of an investment that he recommended to the customer, and that placement in this investment was not authorized by the customer. The customer is currently seeking $25,000 in damages. This dispute is still pending.
In October 2003, a customer alleged that Singer placed trades in the customer account that were not authorized prior to the trades.
In addition, Singer has been subject to termination from employment. In April 2018, Investacorp, Inc. terminated Singer for his failure to be in compliance with the firm’s rules and policies.
False representations include statements that omit or misrepresent information that is material to an investor. Industry rules require representations to investors to be balanced in light of all the information being provided to the investor. In other words, an advisers is prohibited from only listing the positive aspects of a security without disclosing downside risk and negative features or otherwise present the security in an unbalanced or unfair manner. An intentional omission of material information concerning an investment can also be a basis for a fraud claim.
Brokers are also not allowed to engage in unauthorized trading in non-discretionary customer accounts. Unauthorized trading occurs when a broker buys or sells securities without the prior consent from the investor. Brokers have an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). If a customer’s account is indeed discretionary, there must be legal documentation such as a power of attorney to confirm the customer’s approval and knowledge of the discretionary status of the account. Brokers are also obligated to accurately maintain their firm’s books and records. FINRA rule 4511 mandates that brokers accurately record information in books so that the firm can properly supervise broker’s business activities.
Singer entered the securities industry in September 1996. From August 2015 to April 2018, Singer was registered with Investacorp, Inc. From February 2014 to August 2015, Singer was registered with Kovack Securities Inc. From August 2003 to February 2014, Singer was registered with Argentus Securities, LLC. From October 2008 to December 2008, Singer was registered with Financial Counseling Corporation. From May 2002 to August 2003, Kovack was registered with Jefferson Pilot Securities Corporation. From April 2001 to August 2002, Kovack was registered with MetLife Securities Inc.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in false representations and unauthorized trading. Our consultations are free of charge and the firm is only compensated if you recover