Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker John Howley (Howley), previously associated with Park Avenue Securities LLC, has at least 11 disclosable events. These events include 8 customer complaints, 3 regulatory events, alleging that Howley recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on December 29, 2021.
HOWLEY SOLD UNREGISTERED SECURITIES. HOWLEY ACTED AS AN AGENT WITHOUT REGISTRATION. HOWLEY WILLFULLY FAILED TO COMPLY WITH PARK A VENUE’S POLICIES. HOWLEY IS THE SUBJECT OF AN ORDER OF A SELF-REGULATORY ORGANIZATION EXPELLING HIM FROM A SELF-REGULATORY ORGANIZATION.
FINRA BrokerCheck shows a final customer complaint on September 28, 2021.
The Securities and Exchange Commission deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934, Section 203(f) of the Investment Advisers Act of 1940, and Section 9(b) of the Investment Company Act of 1940 against John Howley (“Howley” or “Respondent”). The Commission finds that: Howley was a registered representative of a dually registered broker-dealer and investment adviser (the “IA/BD”) from 1999 through October 2018. From late 2016 through September 2018, Howley suggested that his brokerage customers consider investing in securities offered by Global Credit Recovery LLC (“GCR”), advised them as to the merits of investing in GCR, and helped some of them obtain loans to fund their investments. Howley did not disclose this activity to the IA/BD. As a result of the conduct described herein, Howley willfully violated Section 15(a) of the Exchange Act.
FINRA BrokerCheck shows a final customer complaint on September 09, 2019.
Without admitting or denying the findings, Howley consented to the sanction and to the entry of findings that he refused to appear and provide an on-the-record testimony requested by FINRA. The findings stated that FINRA requested the on-the-record testimony in connection with its investigation into allegations reported by Howley’s member firm in a Form U5 that he failed to disclose private securities transactions to the firm and referred clients to outside investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $351,000.00 on May 22, 2019.
The Customer alleges a $250,000 loss of her investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR. The customer is also seeking reimbursement of premiums for one of her whole life insurance policies sold to her by the RR because she can no longer afford the policy after the investment loss.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,000,000.00 on March 26, 2019.
Plaintiff’s allege a $1 million loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $288,284.00 on March 08, 2019.
Claimant alleges he lost all of his retirement savings as a result of the RR’s recommendation to invest in a private equity venture, Global Credit Recovery, an alleged fraudulent investment scheme.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $650,000.00 on January 11, 2019.
The Customer alleges a $500,000 loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR as a way to afford a fixed life insurance policy sold to the customer. The Customer also claims the sale by the RR of the fixed life insurance policy was excessive and requested a $150,000 refund of their policy premiums.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,100,000.00 on December 20, 2018.
The Customer alleged a $1,100,000 loss of his investment in Global Credit Recovery, an alleged fraudulent investment scheme recommended by the RR.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $139,812.00 on November 28, 2018.
The Customers allege a $1 million loss of their investment in Global Credit Recovery, an alleged fraudulent investment scheme, recommended by the RR. The Customers requested a refund of their whole life insurance policy premiums sold to them by the RR due to the fact they can no longer afford the policies after the investment loss.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $2,500,000.00 on November 26, 2018.
Claimant alleges the RR violated his suitability obligation and was negligent in recommending a $2 million aggregate investment in a private equity venture, Global Credit Recovery, an alleged fraudulent investment scheme.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $980,000.00 on January 06, 2006.
CLAIMANTS ALLEGE BREACH OF FIDUCIARY DUTY, NEGLIGENCE, SUITABILITY AND OTHER VIOLATIONS OF SECURITIES LAWS IN CONNECTION WITH CLAIMANTS’ BROKERAGE ACCOUNTS AND WHOLE LIFE INSURANCE POLICIES. CLAIMANTS ALLEGE DAMAGES OF APPROXIMATELY $980,000.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. 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.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended is in the retail investor’s best interest.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Howley has been in the securities industry for more than 23 years. Howley has been registered as a Broker with Park Avenue Securities LLC since 1999.
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.