Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Steven Netzel (Netzel), previously associated with Madison Avenue Securities, LLC, has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Netzel recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on April 14, 2023.
Without admitting or denying the findings, Netzel consented to the sanctions and to the entry of findings that he caused his member firm’s books and records to be inaccurate by submitting altered customer documents to the firm related to purchases of alternative investments. The findings stated that, in connection with at least six customers’ alternative investment purchases, Netzel submitted Investor Profiles that he knew reflected inaccurate information. There were indications on the face of the documents that information had been whited-out and written over, such as inflating customers’ net worth and liquid net worth. By increasing customers’ net worth, their percentage holdings in alternative investments were reduced, and Netzel was able to obtain the necessary approval for alternative investment purchases. The findings also stated that Netzel made unsuitable recommendations to customers. Netzel’s recommendations resulted in the customers being overconcentrated in alternative investments that were unsuitable for them based on their net worth, investment objectives and risk tolerance.