Securities Lawyers Blog
We represent clients of financial advisors and brokerage firms in investment disputes against their firms, such as Park Avenue Securities LLC. Our services cover a wide spectrum of broker misconduct, including unsuitable investments, failure to supervise, and losses in various investment products. Our firm can analyze your brokerage accounts, determine the extent of your investment losses, and understand the issues and remedies available.
Park Avenue Securities is a broker-dealer and registered investment adviser that sells mutual funds, variable annuities, variable life insurance, 401(k) plans, and advisory services to retail customers through agencies affiliated with Guardian. Formed in Delaware in 1998, the firm is a wholly owned subsidiary of The Guardian Life Insurance Company of America and introduces its brokerage trades to Pershing on a fully disclosed basis.
Park Avenue Securities LLC – By the Numbers:
- CRD #: 46173
- Regulatory Events: 20
- Arbitration Events: 3
- Broker Employees: 2,455
Park Avenue Securities LLC – Investment Advisors:
- SEC #: 58108
- Assets Under Management: $19,575,765,851
- ADV Form Employee: 2,073
Park Avenue Securities LLC – In the News:
FINRA v. Park Avenue Securities LLC (Case #2021070875201) – From January 2019 through July 2021, PAS failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 and the Care Obligation of Rule 15l-1 of the Securities Exchange Act of 1934 (Reg BI) with respect to its registered representatives’ mutual fund share class recommendations to retirement plan customers, in violation of FINRA Rules 3110 and 2010. As of June 30, 2020, and continuing through July 2021, PAS also failed to comply with Reg BI’s Compliance Obligation by failing to establish, maintain, and enforce WSPs reasonably designed to achieve compliance with Reg BI, in violation of Exchange Act Rule 15l-1(a)(1) and FINRA Rule 2010.
FINRA v. Park Avenue Securities LLC (Case #2020066651002) – From December 2014 through April 2018, Park Avenue Securities failed to reasonably supervise a registered representative (the Representative), who engaged in an undisclosed outside business activity involving the operation of a medical cannabis business (Company A) and participated in undisclosed private securities transactions involving Company A. The firm failed to take reasonable steps to investigate red flags that the Representative was engaged in an undisclosed outside business activity and unapproved private securities transactions, in violation of FINRA Rules 3110 and 2010.
FINRA v. Park Avenue Securities LLC (Case #2016049977201) – Between January 1, 2011 and August 31, 2018 (the “Relevant Period”), PAS disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge (“Eligible Customers”). These Eligible Customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. During this period, PAS failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to ensure that Eligible Customers who purchased mutual fund shares received the benefit of applicable sales charge waivers. As a result, PAS violated NASD Conduct Rule 3010 (for misconduct before December 1, 2014), FINRA Rule 3110 (for misconduct on or after December 1, 2014), and FINRA Rule 2010.
FINRA v. Park Avenue Securities LLC (Case #2015043390301) – From January 1, 2013 through March 3, 2015 (the “Relevant Period”), Park Avenue failed to establish, maintain and enforce a supervisory system and written supervisory procedures reasonably designed to ensure that representatives’ recommendations concerning multi-share class variable annuities complied with applicable securities law, regulations and rules. Based on the foregoing, Park Avenue violated NASD Rule 3010 and FINRA Rules 2330, 3110 and 2010.
FINRA v. Park Avenue Securities LLC (Case #2014041510202) – During the period from August 2010 through December 2013 (“Relevant Period”), PAS failed to enforce its written supervisory procedures regarding the monitoring of customer trades, and failed to establish and maintain a supervisory system reasonably designed to follow up on the performance of its supervisors with regard to monitoring trade executions, in violation of NASD Rules 3010(a), 3010(b) and FINRA Rule 2010. PAS also failed to establish, maintain and enforce a supervisory system reasonably designed to review and monitor the transmittal of funds from the accounts of its customers to third party accounts and outside entities, in violation of NASD Rules 3010, 3012(a)(2)(B)(i) and FINRA Rule 2010. As a result of these deficiencies, the Firm failed to detect the unauthorized sales of securities and the wiring of funds by JV, a Firm unregistered administrative assistant who misappropriated approximately $255,300 from the PAS accounts of two elderly customers (the “Customers”) over a period of more than three years.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.