Articles Tagged with Newbridge Securities

shutterstock_187083428-300x198Advisor Craig Sherrer (Sherrer), currently employed by Janney Montgomery Scott LLC (Janney Montgomery) and formerly with Newbridge Securities Corporation (Newbridge Securities) has been subject to at least one customer complaint during the course of his career.  According to a BrokerCheck report the customer complaint concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In April 2019 a customer complained that Sherrer violated the securities laws by alleging that the financial advisor breached their fiduciary duty, negligence, and breach of contract among other allegations associated non-traded REITs causing $1,500,000 in damages. The claim is currently pending.

Our firm often handles cases involving annuities and direct participation products, Non-Traded REITs, oil and gas offerings, equipement leasing products, and other alternative investments.  These products are almost always unsuitable for investors.  In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.

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shutterstock_102242143-300x169According to BrokerCheck records financial advisor John Forrester (Forrester), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least four customer complaints, one regulatory action, and has two bankruptcy disclosures during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Forrester’s customer complaints allege that Forrester recommended unsuitable securities recommendations in a variety of products including alternative investments among other allegations of misconduct in the handling of customer accounts.

In April 2019 a customer filed a complaint alleging that Forrester violated the securities laws by, among other things, that Forrester breached his fiduciary duty and was negligent in the sale of alternative investments causing $55,000 in damages.  The claim is currently pending.

In June 2017 Forrester declared bankruptcy.  This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider.  In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

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shutterstock_113632177-300x249According to BrokerCheck records financial advisor Peter Goffin (Goffin), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least nine customer complaints and one regulatory action during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Goffin’s customer complaints allege that Goffin recommended unsuitable securities recommendations in a variety of products including alternative investments among other allegations of misconduct in the handling of customer accounts.

In March 2019 a customer filed a complaint alleging that Goffin violated the securities laws by, among other things, that Goffin breached his fiduciary duty and was negligent in the sale of alternative investments causing $150,000 in damages.  The claim is currently pending.

In January 2012 a customer filed a complaint alleging that Goffin violated the securities laws by, among other things, that Goffin made unsuitable investments in a variable annuity causing $30,000 in damages.  The claim was denied.

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shutterstock_85873471-300x200According to BrokerCheck records financial advisor Michael Greenfield (Greenfield), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least six customer complaints and one bankruptcy cause during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Greenfield’s customer complaints allege that Greenfield recommended unsuitable securities recommendations in a variety of products including master limited partnerships (MLPs), municipal and corporate bonds, and other securities among other allegations of misconduct in the handling of customer accounts.

In January 2019 a customer filed a complaint alleging that Greenfield violated the securities laws by, among other things, that Greenfield was negligent and breached his fiduciary duty with respect to the purchase of MLPs.  MLPs are speculative oil and gas related investments that are linked to the oil markets.  The alleged damages are $200,000 and the claim is currently pending.

In July 2015 Greenfield declared bankruptcy.  Large tax liens or bankruptcy filings on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts.  In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

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shutterstock_181783781-200x300According to BrokerCheck records financial advisor Xavier Patino (Patino), currently employed by Newbridge Securities Corporation (Newbridge Securities) and formerly with J.P. Morgan Securities LLC (JP Morgan) has been subject to one regulatory action, one one employment termination for cause, and two customer disputes during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the regulatory action against Patino concerns allegations over variable annuity sales practices.

In June 2018 Patino consented to sanctions and to the entry of findings that Patino made material misstatements to a customer and guaranteed the customer against loss in connection with a variable annuity purchase. FINRA also found that Patino solicited this customer to purchase a $192,000 variable annuity contract with the variable annuity prospectus describing the features and risks of the product. However, FINRA found that prior to finalizing the sale the client presented Patino with a document she had prepared and asked Patino to sign it explicitly signifying that he agreed with the statements.  FINRA found that thereafter, the customer’s variable annuity lost value, she complained to Patino’s member firm about her losses, and presented the guarantees signed by Patino.

In April 2017, JP Morgan discharged Patino claiming that he admitted to signing an unapproved document that guaranteed the customer would not lose principal on an investment in violation of firm policy.

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shutterstock_112866430-300x199According to BrokerCheck records financial advisor Jesse Krapf (Krapf), currently employed by Benchmark Investments, Inc. (Benchmark Investments) has been subject to at least one customer complaint and two debt related judgements or tax liens.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Krapf’s customer complaints allege that Krapf made was negligent and breached his fiduciary duty to the customer.

In October 2018 a customer filed a complaint alleging that Krapf violated the securities laws including negligence and breach of fiduciary duty causing $500,000 in damages.  The claim is currently pending.

Krapf also has two unsatisfied debts including a $3,247 tax lien from May 2015.  The fact that a broker cannot manage his own personal finances is material information for a client to consider.  In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

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Acshutterstock_123758422-300x200cording to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Dana Davis (Davis) has been subject to seven customer complaints and one termination for cause.  Davis is currently employed by Newbridge Securities Corporation (Newbridge Securities).  Many of the customer complaints against Davis concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, and unsuitable investments.

In January 2018 a customer filed a complaint alleging misrepresentation, unsuitable and excessive trading, negligent supervision, and breach of fiduciary duty.  The claim alleges $250,000 in damages and is currently pending.

In October 2011 a customer filed a complaint alleging excessive transactions claiming $9,078 in damages.  The complaint was closed.

In September 2006 Davis was terminated from First Montauk Securities Corp. after allegations were made that Davis failed to follow procedures concerning unauthorized trading.

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shutterstock_99315272-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former Newbridge Securities Corporation (Newbridge Securities) broker Edward Klug (Klug) left the securities industry in May 2018 after disclosing several large tax liens in the prior years.  Klug has made seven financial related disclosures and lists four customer complaints.  The customer complaints against Klug allege churning or excessive trading.

In March 2018 Klug disclosed a $141,711 tax lien against him.  In May 2017, Klug disclosed a $482,714 tax lien against him.  Prior to that, in April 2016 Klug disclosed a $44,229 tax lien against him.  Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

shutterstock_141873055-300x268Securities firm Gana Weinstein LLP is investigating Newbridge Securities Corporation (Newbridge Securities) broker Jeffrey Eglow (Eglow). According to BrokerCheck records, Eglow has been subject to 4 customer complaints and one criminal action. The majority of these disputes involve unsuitable, over-concentrated alternative investments.

In May 2017, a customer alleged that Eglow overcharged customers fees for trading which resulted in damages of $48,758. The customer’s request for damages was fully remedied by the court.

In July 2016, a customer alleged that Eglow placed over-concentrated investments in Unit Investment Trusts (UITs) and energy securities which was unsuitable to the customer and resulted in unrealized losses. In addition, Eglow leveraged Exchange-Traded Funds (ETF) in long positions also resulted in losses to the customer. The case was settled at $115,000.

shutterstock_34872913-300x209Former Newbridge Securities Corporation (Newbridge) broker Austin Dutton (Dutton) has been subject to two complaints and a recent sanction citing dishonest or unethical practices in the securities business by the Pennsylvania Department of Banking and Securities and fining Dutton $200,000.  According to a BrokerCheck report Dutton recommended the purchase of a security to at least one customer without reasonable grounds to believe that the transaction was suitable for the customer.

In addition, Dutton’s firm, Newbridge, was also sanctioned by the state of Pennsylvania on findings that “From in or about January 2012 until December 2016, Newbridge did not maintain a reasonable system for applying and enforcing written procedures pertaining to their sales of structured products by one agent in Pennsylvania to certain of his clients…”  While The order does not name the broker it appears reasonably related to Dutton.

According to newssources, Dutton is known to have recommended and sold and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs).  In particular Dutton sold real estate investment trusts formerly managed by Nicholas Schorsch’s private firm, American Realty Capital (ARC), now AR Global.  An accounting scandal affected ARC and its REITs.  According to sources, Dutton sold these products to retirees and police officers.