Carlo Wayne Corzine, a Boca Raton, Florida-based registered principal formerly employed by Shrewsbury, New Jersey-based Buckman, Buckman & Reid, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he participated in the sale of more than 152 million unregistered shares of Tactical Air Defense Services, Inc. (“TADF”) on behalf of his customers, including the president and CEO of TADF and other accounts he controlled. The findings stated that Mr. Corzine’s customers opened accounts at Buckman, Buckman & Reid through which they deposited and sold large amounts of the stock, then immediately wired the sale proceeds out of the accounts. These sales resulted in proceeds of approximately $570,000 to the customers. FINRA’s findings also stated that Mr. Corzine failed to perform adequate due diligence prior to the stock sales despite various red flags indicating suspicious activities and potential violations of the registration requirements of the Securities Act of 1933. Because the stock was unregistered, it could not be sold absent an applicable exemption from registration. No exemption was available under the circumstances. The findings also included that Mr. Corzine neither adequately investigated the truth of the representations contained in a letter from the company’s president and CEO pertaining to TADF that accompanied many of the company’s deposits, nor did he independently verify certain relevant and material information the customer provided pertaining to the stock.
Mr. Corzine, currently employed by Boca Raton, Florida-based Dawson James Securities, Inc., was suspended from association with any FINRA member in any capacity for 30 business days. The suspension was in effect from January 6, 2014 through February 18, 2014.
Broker-dealers have a duty to perform adequate due diligence prior to making an investment recommendation to ensure that the investment is suitable for an individual investor’s age, risk tolerance, investment experience, net worth, and investment time horizon. Adequate due diligence also extends to investigating the legitimacy of the target company’s business operations and representations. If broker-dealers fail to carry out this duty, they can be liable to investors for damages. As a result, investors who have suffered losses are encouraged to file arbitration claims to recover any losses stemming from Buckman, Buckman & Reid and Mr. Corzine’s negligence.
Have you suffered losses in your investment account due to your stockbroker’s negligence and failure to do due diligence? 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 stockbrokers for unsuitable recommendations and/or lack of adequate due diligence.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by theLaw Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.