Leonard Allen Goldberg, of Rancho Mirage California, was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he caused over $123,600 in losses to five customers while making over $77,900 for himself and his employing firms, J.P. Turner & Company, LLP and Newport Coast Securities, Inc.
According to FINRA’s complaint, Mr. Goldberg allegedly used discretion without the required written authorization to effect 300 mutual fund and exchange traded fund (ETF) transactions to the detriment of his customers. Additionally, the complaint alleges that Mr. Goldberg used that discretion to effect fraudulent and unsuitable short-term switches of Class A mutual funds in the same 5 customers’ accounts in order to generate commissions for himself. These mutual fund switches and short-term trading resulted in repeated fees and charges to his customers.
The complaint further alleges that Mr. Goldberg caused the customers’ signatures to be forged on new account forms and mutual fund switch letters. Further, Mr. Goldberg allegedly falsified information regarding each customer’s investment history, net worth, and risk tolerance on the new account forms. All of this was allegedly done to further his unsuitable and fraudulent mutual fund switching scheme.
Stockbrokers, registered representatives, and other financial industry personnel have been known to engage in many types of fraud and other violations of industry rules, practices, and procedures. In order to protect customers from broker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement such protective measures, they may be a liable to account holders for damages flowing from the misconduct. As a result, account holders who have suffered losses stemming from unnecessary, unsuitable mutual fund switches and/or other types of misconduct by their broker or registered representative can bring forth claims to recover damages against broker-dealers like J.P. Turner and Newport Coast Securities, which have a duty to oversee its employees in order to prevent these types of stockbroker misconduct.
Have you suffered losses in your J.P. Turner or Newport Coast Securities investment account due to your registered representative or stockbroker’s unsuitable, unnecessary mutual fund switches? 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, fraudulent misconduct, and other unauthorized and/or illegal conduct.
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 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.