Harold Pomeranz, a former registered representative with Stifel, Nicolaus & Company, Inc (Stifel Nicolaus) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended and assessed a deferred fine of $5,000 by the Financial Industry Regulatory Authority (FINRA) for engaging in unsuitable short-term trading of Unit Investment Trusts (UITs) in the account of an 83 year old customer.
According to FINRA, Harold Stephen Pomeranz, of Plainview, New York, recommended and effected approximately 21 UIT transactions in the account of his 83 year old customer. The UITs recommended by Mr. Pomeranz had 24 month maturity dates and significant upfront charges. The average holding period for the UITs recommended by Mr. Pomeranz was less than fourteen months. Further, on a number of occasions, FINRA found that Mr. Pomeranz recommended that his elderly customer use the proceeds from the short-term sale of one UIT to purchase another UIT with similar and/or identical investment objectives. These unsuitable recommendations and transactions caused his customer to incur unnecessary sales charges.
Without admitting or denying FINRA’s findings, Mr. Pomeranz was assessed a deferred fine of $5,000 and suspended for three months. The suspension was in effect from March 6, 2017 through June 5, 2017.
Stockbrokers have been known to engage in many types of practices that may be in violation of industry and firm rules, practices, and procedures. In order to protect investors from these types of stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, unsuitable trades and/or other misconduct by their broker can bring forth claims to recover damages against broker-dealers, like Stifel, Nicolaus & Company, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Stifel, Nicolaus & Company account due to unsuitable recommendations, trades and/or unnecessary sales charges by your broker? 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 Stifel, Nicolaus & Company 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 35 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.