Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jonah Engler (Engler), previously associated with Global Arena Capital CORP, has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Engler recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on September 24, 2021.
The Securities and Exchange Commission (\\u201cCommission\\u201d) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (\\u201cExchange Act\\u201d) against Jonah Engler a/k/a Jonah Engler-Silberman (\\u201cEngler\\u201d or \\u201cRespondent\\u201d). \, The Commission finds that from October 2013 until June 30, 2015, Engler, age 40, controlled Global Arena Capital Corp. (\\u201cGlobal\\u201d). Engler was officially associated with Global as a registered representative from October 2013 to April 16, 2015, but he continued to control Global from April 17, 2015 through at least June 4, 2015. \, On September 1, 2021, a judgment was entered by consent against Engler, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (\\u201cSecurities Act\\u201d) and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in a civil action entitled Securities and Exchange Commission v. Engler, et al., Civil Action Number 20 Civ. 1625, in the United States District Court for the Eastern District of New York. \, The Commission\\u2019s complaint alleged that, from April 1, 2015 through June 4, 2015, Engler knowingly or recklessly directed an unlawful, unauthorized trading scheme carried out by two registered representatives with the knowing assistance of a principal of Global, that resulted in the execution of approximately 4,500 unauthorized trades in approximately 360 customer accounts. The Commission\\u2019s complaint further alleged that, of the $2.4 million in unlawful commissions generated from the unauthorized trading, Engler and companies he controlled received at least $1.1 million in ill-gotten gains.
FINRA BrokerCheck shows a final customer complaint on November 24, 2020.
Respondent Engler failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $50,000.00 on April 24, 2020.
Engler was named in a customer complaint that asserted the following causes of action: suitability; unauthorized trading; negligence; misrepresentation; elder abuse; failure to supervise; and disgorgement (quantum meruit).
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established a ‘best interest’ standard for brokerage firms and registered representatives. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest. Reg BI comes with different core obligations that brokers must comply with. There is the duty of care obligation requiring financial advisors to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest among other duties. In order to do that the broker must evaluate the potential risks, rewards, and costs associated with a product, account type, or series of transactions being recommended.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest. An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Engler has been in the securities industry for more than 14 years. Engler has been registered as a Broker with Global Arena Capital CORP since 2013.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.