Securities Lawyers Blog
According to BrokerCheck records financial advisor Philip Rosensweig (Rosensweig), currently employed by WestPark Capital, Inc. (WestPark Capital) has been subject to at least ten customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Rosensweig’s customer complaints allege that Rosensweig made unsuitable recommendations in a variety of securities.
In March 2016 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and fraud from 2015 through 2016. The claim alleged $100,000 in damages and settled.
In March 2016 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and fraud from 2014 through 2016. The claim alleged $75,000 in damages and settled.
In October 2006 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by making unauthorized trades. The claim alleged $10,000 in damages and settled.
Brokers are required under the securities laws to treat their clients fairly. This obligation includes the duties to disclose material risks of the investments they recommend and to present products, particularly complex or confusing products, in a fair and balanced manner that allows the client to evaluate the recommendation. Another important obligation advisors have is to make only suitable recommendations for investments to the client. There are many investments that are not appropriate for the majority of investors or for certain investors given their risk tolerance, age, and other factors. Advisors should not present these investment options to clients. There are two screens that advisors must employ to determine whether an investment is suitable for a client. First, there must be a reasonable basis for the recommendation – meaning that the product has been investigated and due diligence conducted into the investment’s features, benefits, risks, and other relevant factors. The advisor must conclude that the investment is suitable for at least some investors and some securities may be suitable for no one. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
An examination of Rosensweig’s employment history reveals that Rosensweig moves from troubled firm to troubled firm. The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry. See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013). In Rosensweig’s 35 year career he has worked at least 14 different firms.
Rosensweig entered the securities industry in 1983. From November 2010 until May 2012 Rosensweig was registered with Dawson James Securities, Inc. From July 2012 until August 2013 Rosensweig was associated with International Assets Advisory, LLC. From September 2013 until September 2015 Rosensweig was associated with Laidlaw & Company (UK) Ltd. Since August 2015 Rosensweig has been registered with WestPark Capital out of the firm’s Boca Raton, Florida office location.
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.