Craig Gould of Jersey City, New Jersey submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to properly supervise in connection with a firm public offering. Gould was the Investment Banking Manager (IBM) for Cabot Lodge Securities and was responsible for reviewing the firm’s offerings and ensuring its compliance with FINRA Rules. FINRA Rule 2310(b)(4)(B) prohibits excess gross proceeds on an offering. As the IBM for Cabot Lodge Securities, FINRA alleged Gould knowingly exceeded the ten percent limit in violation of NASD Rule 3010 and FINRA Rule 2010. Without admitting or denying the FINRA findings Gould agreed to the sanctions and was fined $20,000 and suspended from association with any FINRA member for ninety days.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. To protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages that flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from failed supervision and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Cabot Lodge Securities, which should consistently oversee its brokers’ activities to prevent the above-described misconduct.
Have you suffered losses in your Cabot Lodge Securities account due to failed supervision by your broker? Was Craig Gould your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Cabot Lodge stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.